AnjLeicestershire

Does anyone know if L1A going through GC process can get a First time house purchase tax credit? On IRS website the following is stated:

You do not qualify if;

The taxpayer is a nonresident alien. (Is L1A a nonresident Alien?)

I have been here since Sept 2008 and paying tax.

I would like to close by June if I can get 8k credit!!

Cheers

goldenstate31

Anybody is eligable, and to double check this go onto the IRS website. (I think thats one of the sites where I found the info)
There are some reasons why you cant,
ie if you have owned a home in the U.S within the last 4 years,
but otherwise anybody is eligable.

Peter Newton

L1A is considered a non-resident alien so you can't take the credit (even if you're considered "resident" in the US for tax purposes). Sorry!

Undefeckable

Agreed. those were my findings too....

I'm on L1A and in escrow on the purchase of a home. The $8k would be great, but it's not going to happen.... Pretend it doesn't exist and move on, otherwise you'll just get annoyed.

goldenstate31

PLEASE spend 10 mins of your time and RE-CHECK this by calling the IRS!!!!!!!
You ARE classed as a resident alien if you are living in the us and paying your taxes according to IRS website and I can't bl**dy copy the link!!
PLEASE phone IRS because you ARE eligable
Providing its your residence and you have not owned another home in the us in the last four years.

big_fish

This is good advice. Residency for tax purposes may be different to your immigration status. Here's a useful explanation...

http://www.thetaxguy.com/residency.htm

emailrob

There is nothing in the IRS legislation on this about immigration status. As long as you follow their eligibility rules and meet the criteria, you should be OK.

TheCynick

I agree here. Having been living in the USA since 2008 you have (probably) long since passed the IRS' Substantial Presence test to be considered a resident for tax purposes. Your tax residency and immigration statuses are entirely different.

AnjLeicestershire

Per IRS

‘’ A non-resident alien is classified as a resident alien for tax purposes if they were physically present in the U.S. for 31 days during the current year and 183 days during a three-year period that includes the current year and the two years immediately before that''

I remember filing tax as non resident alien the first year when I came to the US as I was not present in the country for full 183 days but now I have been here almost 2 years which should be good to file for house purchase incentive package??

goldenstate31

This is why I said call the IRS, for first hand informationjob done!

Peter Newton

Totally agree, but the homebuyer tax credit law is a little unclear. Normally the law refers to someone being "treated" as a nonresident alien but in this case the law states that you are ineligible if you "are" a nonresident alien.

I guess if the IRS is telling folks that they are eligible then that's how the IRS has interpreted the law. It will be interesting to see if it comes up in a tax court case...

goldenstate31

IF you are (according to the IRS) considered a resident alien for 'tax purposes' then you are also considered a resident alien for reclaiming tax too.

meauxna

Ii thought you concluded in this other thread that you were eligible based on substantial presence??
http://britishexpats.com/forum/showthread.php?t=652467