Tax Credit Extensions
Generally speaking, tax credit extensions are not common. If you are due a tax credit, make sure you take advantage during the year that you qualify. Along with this, the government is not required to extend any tax credit program. Of course, this does happen from time to time.
If you are interested in a particular tax credit, but unsure of whether you can take advantage at the present time, you should keep a close watch for a tax extension.
Early in 2010, there was a new home tax credit extension that excited many people. Originally, homebuyers who signed a contract but were unable to close on the home before June 30th were out of luck. Thanks to an extension, the deadline for this tax credit was pushed back to September 30th. This went a long way in helping many more people take advantage of the tax credit. Along with this, it continued to give the real estate market a much needed boost.
What about qualified service members? Didn’t they receive a longer tax credit extension? Qualified service members on extended duty have until April 30, 2011 for their new home to go under contract. Along with this, they do not have to close until June 30, 2011 to be eligible for the new homeowner tax credit.
Also, anybody who returns to the United States for medical reasons, before completing extended duty of at least 90 days, may also be eligible for a tax credit extension of one year.
It is never a good idea to rely on a tax credit extension. Hoping that the government grants an extension could lead to a lot of disappointment. For example, many people expected the new home tax credit to be extended later into 2010 and possibly into 2011. If you were one of these people, you probably missed the boat as there are no signs of this happening anytime soon.
Do you have questions about tax credit extensions? If so, it would be in your best interest to contact the IRS or call a tax professional. It is better to know the deadlines for tax credits and how they apply to your situation than to guess and hope that you do everything on time.
Tax credit extensions are not as common as many Americans would like, but they are put into effect from time to time. As long as you aren’t relying on an extension to receive a tax credit, you should never miss out.