Iowa issuing new certificates for federal mortgage interest tax credits. The Iowa Finance Authority yesterday announced that it will issue mortgage credit certificates that enable Iowans to qualify for the federal mortgage interest credit. O. Kay Henderson reports:
The Iowa Finance Authority is offering a new tax credit for new homeowners who fall under limits on annual income and the purchase price of their home. Iowa Finance Authority director Dave Jamison says it’s a credit linked to the mortgage interest new homeowners are paying.
“Yet another way that Iowans who meet our program guidelines can experience the many benefits of home ownership,” Jamison says.
Iowans with the certificates may be able to claim the federal credit on Form 8396. The IRS describes the credit here. They note that interest that qualifies for the credit does not qualify for the home mortgage deduction. You only qualify for the credit if you have a mortgage credit certificate from a qualifying agency; in Iowa, that agency is the Iowa Finance Authority.
The credit isn’t for everyone; there are limits based on income and home price. From the O. Kay Henderson story:
Eligibility guidelines are different for each Iowa county. In the state’s largest county, Polk County, a couple with an annual income of up to $75,000 could qualify for the credit on a home that was purchased for $250,000 or less.
More from WHOTV.com.
Nick Kasprak, Monday Map: Percentage of Taxpayers with AGI over $500,000 (Tax Policy Blog)
Fiscal Cliff Notes
The delay means that now, there are a lot of new forms to be printed, a lot of software programs to finagle. I’d be surprised – and wildly impressed, mind you – to see tax season kick off on time this year for all taxpayers. But fingers crossed, right?
I think the federal tax season won’t be too bad. With all of the retroactive conformity problems in the new law, though, a lot of states are likely to give taxpayers fits.
Kevin D. Williamson, You Cannot Raise Taxes on the Rich:
Tax hikes on the so-called rich may decrease the private sector’s share of income, but they probably will not do much to decrease the real income of high-wage workers and may in reality increase government revenue at the expense of low-wage workers in the long term, though it is very difficult to disaggregate the complex relationships between taxes, wages, and prices. But those who say that they are most interested in economic inequality would do well to follow Kenworthy’s example and look at transfers rather than taxes.
James Pethokoukis, New study undercuts Obama’s income inequality argument
Washington’s tax hike on wealthier Americans won’t accelerate economic growth, won’t create jobs, and won’t lower the debt by an more than a rounding error. So what was the point of all that debate about the fiscal cliff? Why did President Obama insist on those upper-income tax increases, especially when the economy continues to struggle?
Simple: It was a way — even if mostly symbolic — of addressing what President Obama views as America’s biggest problem: rising income inequality.
A falling tide lowers all boats.
Freakonomics, How Much Financial Inequality Is Due to Financial Illiteracy? Is that illiteracy of the people who are unequal, or those who think it’s a big deal.
Jeremy Scott, Both Parties Should Have Pushed Payroll Tax Cut (Tax.com)
Hani Sarji, More Estate Tax Changes Could Follow Fiscal Cliff Deal (via the TaxProf)
Patrick Temple-West, More tax revenue to IRS before cliff, and more
All the talk about the fiscal cliff and the inadequacy of the last-minute deal to avert it obscures one fact: It probably provided the government with tens of billions of dollars in unexpected tax receipts.
Many taxpayers accelerated income and deferred deductions anticipating the rate increases.
Wall Street Journal, The Stealth Tax Hike: Why the New $450,000 Income Threshold Is a Political Fiction:
Paul Neiffer, Fiscal Cliff Tax Bill May Increase Divorce Rate!
Trish McIntire, More ITIN Info
Missouri Tax Guy, Married Filing ….
Jack Townsend, HSBC Depositor Pleads Guilty to Conspiracy
Kay Bell, Tax moves to make in January 2013
I like the first half. Let There Be Wine (And Taxes) (Jason Dinesen)
The Critical Question: Can You Distinguish a Tax from a Ransom Payment? (Robert Goulder, Tax.com)
I wasn’t serious about her anyway. Ex-KPMG Chief to Auditors: You Are All Flirting With Irrelevance (Going Concern)
Hope and change. A lot of change, if you use it to buy coffee. Should the President Mint a $1 Trillion Platinum Coin? (Megan McArdle)