Regina Corcoran's - "Pursuing the American Dream"
Sunday, February 21, 2010
Wait just a minute

By Regina Corcoran Special to The Citizen

Don't send in that tax return until you read this. There is important information about rebates and tax credits -- some new ones, some extended ones and some old ones they dusted off and resuscitated.

As always, I am only capable of reading and writing. I am not the expert. Please check with your certified public accountant, tax attorney or professional tax preparer for details.

Here's the answer to that burning question. Yes, the first-time homebuyer tax credit has been extended and reworked for homes bought after Nov. 6, 2009.

Purchasers must be at least 18 years old and not a dependent. What? You never thought of that one? Parents were buying houses with the deed in the name of their children to get the tax credit.

As adjusted gross income hits and exceeds $125,000/$225,000 for single/joint taxpayers respectively, the tax credit diminishes and goes away.

Also, home purchases of more than $800,000 don't qualify.

For those with incomes too high or house purchases that are excessively valuable, maybe your kid hits college age before April 30 and you stop writing him or her off as a dependent. Then, maybe you, too, can still make this work. See paragraph two above first.

Also, those experienced homeowners purchasing a different home for the first time in at least five years are eligible for a $6,500 tax credit.

Homes with a binding contract by April 30 and closing before June 30, 2010, qualify. Taxpayers may take the credit for qualifying purchases on either their 2009 or their 2010 tax return.

In most cases, those who don't keep the home for at least three years have to give the money back.

Making Work Pay refund: the bonus round. Joint filers with earned wages of $12,903 up to $190,000 are eligible for an additional tax refund of $800. Other taxpayers earning wages of $6,451 up to $95,000 get $400. The credit is 6.2 percent of the eligible wages.

Speaking of college-age students, parents can receive up to $2,500 tax credit for school expenses including books. You'd think those books were collectors' items for what they cost.

Parents can even get up to $1,000 back for this one if they owe no taxes. You know the next line in this song: restrictions apply.

Take a new look at the Earned Income Tax Credit. In some cases even those with no children and incomes of $18,440 or less are eligible. And it's a true refund. You owe taxes. You don't owe taxes. You can still get this refund.

Anyone donating to qualified charities providing earthquake relief in Haiti may claim the deduction for the donation on their 2009 or 2010 tax return. That includes those who texted or paid by check, credit card or debit card. To find eligible charities, visit http://www.irs.gov/charities/article/0,,id=96136,00.html.

Energy tax credits: I know. I know. Anyone who read Michael Crichton's book "State of Fear" and endured this recent cold snap has trouble believing in global warming. However, smaller electric bills are always better than larger ones.

Here's an easy tax credit possibility for those of us in the Keys. Metal roofs with appropriate pigmented coatings (HARC, really, you must rethink this one) and asphalt roofs with cooling granules can get you a 30 percent tax credit with no upper limit. Check with the manufacturer to be sure the material qualifies.

Installation costs are not included. New and existing homes, principal residences and second homes all qualify.

To find out if you are eligible for an immediate net pay increase, type http://www.irs.gov/individuals/page/0,,id=14806,00.html in your Web browser search bar. It enables you to find out if too much is being withheld from your paycheck. Who needs the money more payday to payday? You or Uncle Sam?

What do you think?

Regina E. Corcoran, SRA, is a Florida real estate broker, state-certified residential appraiser and residential contractor. She is president of AmeriRealty Corp. and vice president of AmeriMortgage Corp. She can be reached at ReginaECorcoran@cs.com. Corcoran writes her column exclusively for The Citizen. It appears every other Sunday.