Did you overpay your taxes or receive a credit? Form CP-21B is for you

Generally, earning money means paying taxes, and paying taxes always means filling out forms. These forms can range from tedious to overwhelming, but completing them accurately is important to ensure as many refunds as possible. One, Form CP-21B, is exclusively for that purpose: it handles overpayment of taxes. The overpayment also includes amended taxes that include new deductions or credits, such as the First Time Homebuyer Tax Credit.

If you receive a CP-21B form after applying for the First Time Homebuyer Tax Credit, it is the IRS that tells you that you are due for a refund. According to the official IRS website, no further action is required; Receipt of this form means that you will receive a refund within the next 30 days.

Be careful though: Before allocating the refund money, you need to call the IRS and verify the amount. The IRS may decide that you are not a first time buyer after all, AFTER you receive the CP-21B.

Using the number on the top of the CP-21B [http://www.rapidtax.com/blog/index.php/the-cp-21b-and-other-forms-you-need-for-the-first-time-home-buyers-tax-credit/#more-119/] The form should only take a few minutes and can save you a major headache later. You wouldn’t want to plan for a new car purchase, only to find that the IRS modified your taxes differently than originally stated and decided that you were not eligible for the First Time Home Buyer Tax Credit after all. .

You should also call the IRS if you think you received a form CP-21B in error or if you have already made a correction. For faster service, avoid calling the IRS on Mondays when volumes are highest. If you are having ongoing problems with Form CP-21B, the First Time Home Buyer Tax Credit, or any other tax problem, you can contact the Taxpayer Advocate Office.

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *