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First Time Home Owner Tax Credit Extended Till June 30, 2010

11-05-09
Julie Staradumsky CREN
  • In this July 24, 2009, photo, a pending home sale in Palo Alto, Calif., is shown.

    In this July 24, 2009, photo, a pending home sale in Palo Alto, Calif., is shown. (AP Photo/Paul Sakuma)

    • (AP) Buying a home is about to get cheaper for a whole new crop of homebuyers - $6,500 cheaper.

    First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, and President Barack Obama is expected to sign it.

    Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers - or anyone who hasn't owned a home in the last three years - would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

    "This is probably the last extension," said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

    The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that was included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.

    "We are still in a world of economic hurt, and Congress must continue to act boldly and creatively," said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. "With the right mix of tax breaks and investments we will get through this recession and get folks working again."

    The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

    Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate by a 98-0 vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.

    "For the vast majority of cases, the homebuyer tax credit amounted to a free gift since it did not affect their decision to purchase a home," Bond said. "And for the small minority of buyers whose decision was directly caused by the credit, this raises the question of whether we are subsidizing buyers who may not have been able to afford buying a home in the first place."

    The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

    The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

    Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

    The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years.

    The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers. Congress included a scaled-back version of the tax break - for companies with revenues of $15 million or less - in the economic recovery package enacted in February. The new tax break would be available to companies of any size, providing a quick source of cash.

    The U.S Chamber of Commerce has been a big backer of the tax break for money-losing companies.

    "It frees up capital that they can use to maintain jobs and potentially even hire new people as the economy returns," said Caroline Harris, senior tax counsel for the U.S. Chamber of Commerce.

    The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.



    The bill is H.R. 3548.

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    HUMOR: HAPPY HALLOWEEN

    11-03-09
    Julie Staradumsky CREN

    Happy Halloween
































    Happy Halloween!

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    $2.6 Billion to Help Low Income Households with Energy Costs

    10-24-09
    Julie Staradumsky CREN

    HHS Provides More Than $2.6 Billion to States to Help Low-Income Households with Energy Costs

    HHS Secretary Kathleen Sebelius today announced the release of more than $2.6 billion to states to help low income citizens with their heating bills during October, November and December of this year. These funds represent grants to states, tribes and territories under the Low Income Home Energy Assistance Program (LIHEAP).

    "By releasing this money now, we are helping to provide needed assistance to millions of Americans who otherwise might not be able to afford heat this winter," Secretary Sebelius said. "This program helps to offset seasonal energy costs for low income families, leaving more of their income to use for other necessities."

    LIHEAP helps eligible families pay the costs of heating and insulating their homes in the winter, and cooling their homes in the summer. HHS is releasing such a large allocation of LIHEAP funds now in order to ensure that states have resources available to support their energy assistance programs as the weather turns colder.

    "Each year LIHEAP helps more than five million low income households deal with energy costs," said Carmen Nazario, assistant secretary for children and families. "We will continue to work with states, tribes and territories to assure their heating assistance programs work effectively."

    For a complete list of state allocations of the funds released today go to http://www.acf.hhs.gov/news/press/2009/liheap_2010.html.

    Individuals interested in applying for energy assistance should contact their local/state LIHEAP agency. For more information, go to http://www.acf.hhs.gov/programs/liheap/ or http://www.acf.hhs.gov/programs/ocs/liheap/brochure/brochure.html.

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    FHA Refinance

    10-21-09
    Julie Staradumsky CREN

    FHA Refinance

    Learn About Your Mortgage Options

    Homeowners enjoy the benefits of investing in their property year after year. For some, there comes a time when that investment can come in handy. Refinancing with an FHA loan can prove to be an effective way to put that equity to work.

    Sending a child to college, consolidating bills, taking a much needed vacation, or making home improvements are some of the ways homeowners tap into the equity they have accumulated in their home to help with these expenses. Keep in mind that FHA refinancing is only available to homeowners who are currently using their home as their principal residence.

    FHA offers several different options to homeowners who are considering an FHA refinance mortgage:

    FHA REFINANCE: CASH OUT REFINANCING

    This refinancing option is especially beneficial to homeowners whose property has increased in market value since the home was purchased. A Cash Out refinance allows homeowners to refinance their existing mortgage by taking out another mortgage for more than they currently owe, therefore repaying their current mortgage and using the equity they have built up in their home to take out another larger mortgage. This allows the homeowner to access the equity they have built up in their home and put it to good use where needed.

    In order to get the most benefit from refinancing your mortgage, it is often best to consider refinancing after you have had time to build up a significant amount of equity in your home. If the property was purchased more than one year prior to the refinance, the homeowner can refinance the existing mortgage for up to 85 percent of the appraised value plus the allowable closing costs, which vary from state to state.

    FHA REFINANCE: STREAMLINED REFINANCING

    This refinancing option is considered streamlined because it allows you to reduce the interest rate on your current home loan quickly and oftentimes without an appraisal. FHA Streamlined Refinance also cuts down on the amount of paperwork that must be completed by your lender saving you valuable time and money.

    In order to qualify for a Streamlined Refinance your original home loan must be an FHA loan in good standing and the refinance must lower your monthly interest payments. This type of refinancing option reduces your monthly expenses by lowering your payments but there is no option to receive cash back. This works well for people who are in good financial standing with no significant debt because it allows you a little extra money each month that can be put to good use elsewhere.

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    New Jersey Food Stamp Program

    10-17-09
    Julie Staradumsky CREN
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    New Jersey's Food Stamp Program

    Do you need help paying for groceries? Many people who are eligible for New Jersey's Food Stamp Program don't know it. Many families qualify for the program, even if they work, own a home, or own a car. The following information can help you figure out if you might qualify for the program.

    Aren't food stamps just for people on welfare?

    No. Most people who are eligible for food stamps are not receiving Work First New Jersey (WFNJ) welfare benefits.

    Can I get food stamps if I work?

    Yes. Even if you are working, if your household income is below 130% of the Federal Poverty Level, you might qualify for food stamps.

    How do I know if I can get food stamps?

    Households must first meet income and asset tests. If you meet these tests and are found eligible, you will also have to comply with the program's work requirements. Some people are exempt from the work requirements.

    Whether or not you can receive food stamps, and how much you can receive each month, is based on your income. The Food Stamp Program uses a two-step process: First, most households have to have incomes that are no more than the gross income limit based on their household size. This is your income before any deductions are taken. Next, the food stamp office will deduct some of the cost of certain expenses, like child care, utilities, and rent, from your income. The amount left over after these deductions is your net income. Most households must meet both the gross and net income tests. But a household with an elderly person or a person who is receiving certain types of disability payments only has to meet the net income test. The below chart can help you figure out if you meet the income requirements for the Food Stamp Program.

    Household Income Limits for Food Stamps

    People in Household

    Gross Monthly Income Limits

    Net Monthly Income Limits

    1

    $1,127

    $867

    2

    1,517

    1,167

    3

    1,907

    1,467

    4

    2,297

    1,767

    5

    2,687

    2,067

    6

    3,077

    2,367

    7

    3,467

    2,667

    8

    3,857

    2,967

    Each additional person

    +390

    +300

    What is deducted from gross income?

    • A 20 percent deduction from earned income.
    • A "standard" deduction (between $134 and $191 per month, depending on your household size).
    • A dependent care deduction when needed for work, training, or education-but not more than $200 for each child under age 2 and not more than $175 for each other dependent.
    • Medical expenses for elderly or disabled members that are more than $35 per month, if they are not paid by insurance or someone else.
    • Legally owed child support payments.
    • A $143 shelter deduction if you are homeless.
    • Excess shelter costs that are more than half of the household's income after the other deductions. Allowable costs include the cost of fuel used to heat and cook, electricity, water, the basic fee for one telephone, rent or mortgage payments, and taxes on the home. (New Jersey allows a household to deduct a set amount for utility costs instead of actual costs.) The amount of the shelter deduction cannot be more than $431 unless one person in the household is elderly or disabled.

    What are the food stamp resource limits?

    Households may have $2,000 in countable resources, such as a bank account. Households may have $3,000 if at least one person is age 60 or older. Certain resources are not counted, such as a home, furniture, and the resources of people who receive Supplemental Security Income (SSI) or WFNJ benefits.

    If I qualify for food stamps, how much will I receive?

    The amount of food stamps you get will depend on the number of people in your household and on how much monthly income is left after certain expenses are subtracted. The expenses that are subtracted are called deductions.

    A household is normally a group of people who live together and buy food and prepare meals together. The amount of benefits the household gets is called an allotment. The net monthly income of the household is multiplied by three, and the result is subtracted from the maximum allotment for the household size to find the household's allotment. This is because food stamp households are expected to spend about 30 percent of their net income on food.

    People in Household

    Maximum Monthly Food Stamp Allotment

    1

    $200

    2

    367

    3

    526

    4

    668

    5

    793

    6

    952

    7

    1,052

    8

    1,202

    Each additional person

    +150

    Calculating Food Stamp Benefits

    Benefit Computation

    Example for a household of four

    Deduct allowable expenses from your gross income.

    Multiply net income by 30%...
    (Round up)

    Subtract 30% of net income from the maximum allotment for the household size...

    $556 net monthly income
    x .3 = $166.80 (round up to $167)

    $668 maximum allotment for 4 - $167 (30% of net income) = $501.

    Food Stamp Allotment for a full month will be $501

    How do I apply for food stamps?

    The food stamp office must give you an application on the same day that you ask for one. You may ask for it in person, over the phone, or by mail. You may also ask someone else to get one for you. The office must accept the form on the same day you turn it in, even if they cannot interview you on that day.

    Fill in your name, address, telephone number, and as much other information as possible on the form. Make sure to sign it. Take or mail the form to the food stamp office as soon as possible. A food stamp worker can help you fill out the rest of the form during your interview.

    To find out if you are eligible for food stamps, and to fill out an application and submit it online at the NJHelps Web site. You'll still need to have an interview and will need to submit verification for some of the information in your application.

    Do I have to go the welfare office for an interview?

    Yes, in most cases, you do have to go to the welfare office for a face-to-face interview, but you can ask for a waiver of that interview if you can show that it would be a hardship for you to get to the office. Even if you qualify for a hardship waiver, the food stamp office will still need you to sign and complete paperwork and to provide verification of certain information. They will still need to conduct an interview but will interview you in your home or over the phone.

    How long does it take to receive food stamps?

    If you qualify for food stamps, you will get them no later than 30 days from the date the office got your application.

    If your household has little or no money and needs help right away, you may be eligible for expedited food stamps. This means that the food stamp office must give you food stamps within seven days of the date you apply.

    The food stamp office will usually not interview you on the same day that you turn in the application. After you have turned in your application, the food stamp office will give you a date for an interview. They will contact you by telephone or mail with an interview time and date. If you can't make the interview, contact the food stamp worker right away.

    At the interview, a food stamp worker will explain the program rules and help you complete any parts of the application that you have not filled out. The worker will also ask you for proof of certain information you have given. If you have trouble getting papers (documents) or information you need, the worker may be able to help you. If the papers are not easy to get, you may give the name of someone, such as your employer, who can confirm your statements.

    How will I know if I am eligible for food stamps?

    After your interview, the food stamp office will send you a notice. If you do not qualify for food stamps, the notice will explain why. If you do qualify, the notice will explain how much your food stamp benefit will be. It will also tell you how long you can get food stamps before you must reapply.

    If you think that your application has been wrongly denied or that you have not received the correct amount of food stamps, you should tell the office. If they do not agree, you can ask for a fair hearing to challenge the decision. Contact your local Legal Services office or LSNJ-LAWTM, Legal Services of New Jersey's statewide, toll-free legal hotline, at 1-888-LSNJLAW (1888-576-5529) for more information.

    Will I get stamps or coupons? How do I use food stamps?

    People who receive food stamps don't receive coupons anymore. Instead, the amount of the food stamps is placed in an account. Food stamp recipients receive a plastic Electronic Benefits Card, similar to an ATM card or a debit card. They then use this card at grocery stores and other places where food stamps are accepted. The cost of the food is automatically deducted from the household's food stamp account.

    I am working and my income changes every month. Do I have to go back to the food stamp office each month?

    Probably not. If you are working when you apply for food stamps, you only have to report changes in earned income every six months, unless your income goes above the gross monthly income limit for your household size (see the Household Income Limits for Food Stamps chart.) If your income goes above the gross monthly income limit, then you must report this change within 10 days. If you stop working, or start receiving income other than earnings, you will need to report that as well. If your income goes down, however, you can ask the food stamp office to readjust your food stamps to reflect the loss of income.

    Where can I apply?

    Each county has at least one food stamp office. The county offices are listed below. You must apply in the county where you live. You can apply in person at the food stamp office, or you can call or write for an application. You can also ask someone else to get an application for you. Some food stamp offices are open early in the morning or in the evening. After you submit the application, you (or your authorized representative) will need to go to the food stamp office for an interview, unless it would be a hardship for you to go to the office. If it would be a hardship, the food stamp office can arrange for an interview in your home or at another location.

    New Jersey Food Stamp Offices

    Agency

    Phone

    Fax

    Atlantic County Department of Family & Community Development
    1333 Atlantic Ave.
    Atlantic City NJ 08401

    609-348-3001

    609-343-2374
    Bergen County Board of Social Services
    216 Rte. 17 North
    Rochelle Park NJ 07662-3300

    201-368-4200

    201-368-8710
    Burlington County Board of Social Services
    Human Services Facility
    795 Woodlane Rd.
    Mount Holly NJ 08060-3316

    609-261-1000

    609-261-0463
    Camden County Board of Social Services
    County Admin. Bldg.
    600 Market St.
    Camden NJ 08101

    856-225-8800

    856-225-7797
    Cape May County Board of Social Services
    Social Services Bldg.
    4005 Rte. 9 South
    Rio Grande NJ 08242-1911

    609-886-6200

    609-889-9332
    Cumberland County Board of Social Services
    275 N. Delsea Dr.
    Vineland NJ 08360

    856-691-4600

    856-692-7635

    Essex County Department of Citizen Services
    18 Rector St., 1st Fl.
    Newark NJ 07102

    973-733-3000

    973-643-3985
    Gloucester County Board of Social Services
    400 Hollydell Dr.
    Sewell NJ 08080

    856-582-9200

    856-582-6587
    Hudson County Division of Social Services
    John F. Kennedy Office Bldg.
    2 Enos Place
    Jersey City NJ 07306

    201-420-3000

    201-420-0343
    Hunterdon County Division of Social Services
    Community Services Center
    6 Gauntt Place
    Flemington NJ 08822

    908-788-1300

    908-806-4589
    Monmouth County Division of Social Services
    3000 Kozloski Rd., PO Box 3000
    Freehold NJ 07728

    732-431-6000

    732-431-6267
    Morris County Division of Employment & Temporary Assistance Services
    340 W. Hanover Ave.
    Morris, NJ 07963
    Dover Office: Late hours - 4:30-6:30 PM
    8 South Morris St.,
    Dover NJ, 07801

    973-326-7800

    973-326-7251
    Ocean County Board of Social Services
    1027 Hooper Ave. North, PO Box 547
    Toms River NJ 08754-0547

    732-349-1500

    732-473-0669
    Passaic County Board of Social Services
    80 Hamilton St.
    Paterson NJ 07505-2057

    973-881-0100

    973-881-3232
    Salem County Board of Social Services
    147 S. Virginia Ave.
    Penns Grove NJ 08069

    856-299-7200

    856-299-3245

    Somerset County Board of Social Services
    73 E. High St., PO Box 936
    Somerville NJ 08876

    908-526-8800

    908-231-9010
    Sussex County Division of Social Services
    83 Spring St., PO Box 218
    Newton NJ 07860-0218

    973-383-3600

    973-383-3627
    Union County Division of Social Services
    342 Westminster Ave.
    Elizabeth NJ 07208-3290

    908-965-2700

    908-965-2758
    Warren County Welfare Board
    Court House Annex
    501 Second St., Box 3000
    Belvidere NJ 07823-3000
    Clients must be screened by phone first.
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