First time home buying credit

[kittywitty]

We filed our taxes today at H & R Block (big mistake! They even spelled my name wrong on every form the first time through!). THen $221 later, they say they won't even file my first time home buying credit until March to make sure my federal taxes go through first (I'm getting a refund) and then they'll "work on them" and amend my taxes to get me the credit because they say it takes at least 3-6 months to get the money. Honestly, I feel a little jerked around. Does it really take that long?

[xmysticprincessx]

I'd call the IRS with that question.

[jentilla]

You got jacked. Our CPA charges $150 and gets us a ton of money back and we have lots of paperwork. He also filed my BIL's FH buyer credit and he got his money in 6 weeks.

[feminist~mama]

I don't know- I read that the IRS is not going to begin reviewing 1st time home buyers credits until March... and that you do have to file an amended return...

I'd check the IRS website for concrete answers! Good luck and congrats on the new house!

[claddaghmom]

Seems expensive but that could be regional.

We filed an extension b/c we bought our house after doing our taxes. It did indeed take a very long time...I think it was almost 5 months. They had every excuse in the book and DH ended up calling them once a week. Of course now we owe taxes on the interest we made while it sat around.

[kittywitty]

Originally Posted by claddaghmom

Seems expensive but that could be regional.

We filed an extension b/c we bought our house after doing our taxes. It did indeed take a very long time...I think it was almost 5 months. They had every excuse in the book and DH ended up calling them once a week. Of course now we owe taxes on the interest we made while it sat around.

You *owe taxes*? Did you file at the same time as your federal taxes and not amended? I heard the IRA has to pay *you* interest from the home buying credit?

[claddaghmom]

Originally Posted by kittywitty

You *owe taxes*? Did you file at the same time as your federal taxes and not amended? I heard the IRA has to pay *you* interest from the home buying credit?

The IRA did pay us interest, so now we have to pay taxes on the interest.

<--- about sums it up.

[zebra15]

I learned a long time ago not to use H&R Block. They are VERY VERY expensive and well... not very good. I found they charge by the form not by service and it really can add up. The year I used them I got all done, found out how much it was going to cost and I walked out and said, 'thanks but no thanks'.

[kittywitty]

Originally Posted by zebra15

I learned a long time ago not to use H&R Block. They are VERY VERY expensive and well... not very good. I found they charge by the form not by service and it really can add up. The year I used them I got all done, found out how much it was going to cost and I walked out and said, 'thanks but no thanks'.

I totally should have done that!

Originally Posted by claddaghmom

The IRA did pay us interest, so now we have to pay taxes on the interest.

<--- about sums it up.

THAT sucks.

[mama2peyton]

hi

Edited by mama2peyton - 11/10/10 at 10:03am

[RooRooDog]

A relative who works at the IRS told me that most tax returns with the home buyer credit on them are going to exams- i.e. not audited, but the IRS does take a second look at them. This obviously slows down the return process. However, amended tax returns usually take months to process as well, and now that original returns are "backing up" so to speak, your amended one may now take longer than usual. As a previous poster noted, the IRS pays interest on money they owe you after April 15, but you need to report this as income for 2010.

So basically what HR Block did may enable you to get the rest of your refund sooner but the home buyer credit part later than if you had just filed the whole thing at once.

If you have any questions, call the IRS- most of the employees are fairly helpful! Best days to call are Wed-Fri, FYI.

[blazer]

So they stopped processing the homebuyer credit in late oct/ early November last year and created a new form that became available in Jan, so yes they are a little backed up with that . You also can not efile with the homebuyer credit which also deslays your
return.
So it migh make sense to efile without claiming the homebuyer credit get you money and then amend your return for the home buyer credit.

We ammendd last years return for the homebuyer credit in early October before the change and did get about 160- ish in interest that we do have to claim as income ... Not a big deal after getting 8 K if you think about it.