- Free Live Chat & E-Mail Support
- Free to Try Online Software
- Guaranteed Accurate & Secure
- Federal & State Preparation
If you need to file a federal tax return online, look no further.
Many Americans file federal income tax online with RapidTax.com every year. We have easy to use software and online income tax professionals ready to help you file your tax return online.
If you need to file online income tax, the income tax professionals at RapidTax.com strive to keep you informed about any new federal tax laws that may change your tax situation in the 2008 tax year. They are ready to help you file your online income tax.
Here are a few tips before you file your online taxes:
First Time Homebuyer Tax Credit
If you are a first time homebuyer, pay attention because you might be eligible for a new tax credit that you can take advantage of when you file online income tax included in the recently enacted Housing and Economic Recovery Act of 2008. This tax credit is only available from a limited time and applies to homes purchased on or after April 8, 2008 and on or before July 1, 2009. The first-time homebuyer credit is refundable meaning it will reduce your tax liability and/or increase your refund. The credit amount can be up to 10% of the purchase price of the home and has a maximum available credit of $7500 ($3,750 if filing as married filing separately). Therefore, if your home cost $75,000 or more, you can be eligible to receive the full credit.
Keep reading to learn more before you file your tax return online.
What's the catch? Unfortunately, this federal credit has to be repaid over a 15 year period, much like an interest-free loan. For example, if you buy a home today and claim the maximum credit of $7,500 on your 2008 return, you will have to begin repaying the credit by one fifteenth of the amount ($500) on your 2010 return. In the event of your death, any remaining annual payments will no longer be due. However, if you filed a joint return, your spouse will be required to pay their half of the remaining amount due. If you begin using your home as a vacation home, a business, or anything other than your main home, you will have to pay all remaining installments on the return of the year that the change was made. Upon sale of your home, all installments will also be due on the return for the year of the sale and the repayment amount will be limited to the amount you gained from the sale to an unrelated taxpayer. If you transfer your home to a spouse or lose it in a divorce settlement, the other person will be held liable for making all remaining installment payments.