Extend home buyer credit, but cut it

October 26, 2009

That's the latest word from Capitol Hill on the continuation of the first-time home buyer credit.

Actually, it's the latest word from Air Force One. No, it's not the Prez talking, but Democratic Sen. Bill Nelson of Florida, who was on the plane with Obama en route to Jacksonville.

Nelson told reporters that the extension could be completed as early as this week as part of the Senate's deliberation of unemployment benefits legislation.

But along with continuing the home buyer tax break through 2010 (it's scheduled to end in just over a month), the credit would be gradually reduced.

According to a Nelson aide, first-time home buyers who close before April 1, 2010, would get the full $8,000. After that date, the credit would be reduced by $2,000 in each successive quarter until
expiring at the end of the year.

Everyone's unhappy: Yep, once again, Capitol Hill sure knows how to make everyone unhappy.

The real estate lobbyists industry wanted an extension and expansion, not only of the dollar amount, but also of the pool of possible home buyers, not just first-timers.

Taxpayers who aren't able to get into their first house by the April deadline will be irked.

And even the IRS will be ticked off.

By phasing out the credit based on arbitrary dates (I'm sure the phaseout was constructed to deal with budgetary concerns), taxpayers are going to be confused and end up making mistakes.

Or as has already happened, they'll try to get around the restrictions. OK, in plain English, they'll cheat.

That means the tax agency will have its work cut out for it yet again to make sure that such honest errors and dishonest tax break efforts don't happen.

Good luck, once again, with that, IRS.

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Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Thanks! Looking forward to it!

  • TXCPA

    No one is EVER happy. There has to be a deadline and if you don’t make the deadline, tough luck, go cry about it within the confines of your rent house or apartment. This program is so short-sighted anyway… it will have the same result as the cash for clunkers program. At least the phase-out may ease us back to the bottom instead of drop us like rock.

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