EITC and refunds

[xoxoamandajo]

Okay, I'm trying to find out if EITC can be exempt in CH. 7 in WV but haven't found a clear cut answer. I know our wildcard says this:Citation: W. Va. Code � 38-10-4 (e) Exemption: Wild Card $800 plus unused portion of homestead or burial exemption, of any property). Not a clue exactly what this means! I'm trying to find a free consult, right now the cheapest I have found is about $250 to sit down with an attorney and do a consult.

I get a fairly large tax return each year, approx $8k and rely on that money through out the year to be able to survive. The return I will be due next year will already go directly do my mother and grandmother. How do taxes work? I understand each state is differently but I truly need someone to explain possibilities as I'm not understanding things I am reading when I search. If it helps, I make less than $30k a year, low income, public assistance. I don't currently own a vehicle but one will be gifted to me sometime in Dec due to a family estate settling. I have a USDA mortgage that has never been late and intend on keeping the house. My biggest concern right now is, making sure I get to keep the house, and what happens with taxes?! I see some mention you can exempt $X amount, how do you determine what $X amount is? As in, could you tell me where to look on previous returns as an example? How can I keep my taxes?

[justbroke]

It looks like West Virginia has an "unused homestead" exemption if you don't claim a home. It's worth $25,000. Since you're claiming your home, the key would be what portion of the homestead would be unused. This will be based on your equity in the home. If you have very little to no equity, your "unused homestead" exemption can be applied to any property... which should include your refund.

You should keep shopping for a free consultation. You shouldn't need to pay for a "free" consultation.

[xoxoamandajo]

It looks like West Virginia has an "unused homestead" exemption if you don't claim a home. It's worth $25,000. Since you're claiming your home, the key would be what portion of the homestead would be unused. This will be based on your equity in the home. If you have very little to no equity, your "unused homestead" exemption can be applied to any property... which should include your refund.

You should keep shopping for a free consultation. You shouldn't need to pay for a "free" consultation.

I am indeed still shopping around. I just made a list to call that are a few towns over from where I am. As far as equity goes...I just purchased the house a year ago so I really haven't paid much into it at all, the majority of the payment go to interest.

[xoxoamandajo]

It looks like West Virginia has an "unused homestead" exemption if you don't claim a home. It's worth $25,000. Since you're claiming your home, the key would be what portion of the homestead would be unused. This will be based on your equity in the home. If you have very little to no equity, your "unused homestead" exemption can be applied to any property... which should include your refund.

You should keep shopping for a free consultation. You shouldn't need to pay for a "free" consultation.

My mortgage is actually set up into two loans through USDA, on the one I have only paid $313.11 to principal and $103.86 towards interest. On the second one I have paid $1,244.24 towards principal and $3,564.01 towards interest. Does that mean I would have $23442.65 left of what they would allow me to claim? Meaning, if my refund was say $8k then I would be ok to keep it?

[justbroke]

Your equity would be your loan balance for each of them, versus the value of your home; that is known as equity. So if your home is worth $200,000 with Loan 1 balance at $142,000 and Loan 2 balance at $48,000, then you would have $10,000 in equity (200 - 142 -48 = 10).

In your example, you are using the balance versus the loan amount. It should be the balance versus the value of the home. The value of the home may not have changed much, if any, but if your home increased in value, you could have more equity than you believe.

Since it's a relatively new home, you likely don't have $25,000 in equity unless you are in a really good market the the prices skyrocketed right after your purchase.

[xoxoamandajo]

Your equity would be your loan balance for each of them, versus the value of your home; that is known as equity. So if your home is worth $200,000 with Loan 1 balance at $142,000 and Loan 2 balance at $48,000, then you would have $10,000 in equity (200 - 142 -48 = 10).

In your example, you are using the balance versus the loan amount. It should be the balance versus the value of the home. The value of the home may not have changed much, if any, but if your home increased in value, you could have more equity than you believe.

Since it's a relatively new home, you likely don't have $25,000 in equity unless you are in a really good market the the prices skyrocketed right after your purchase.

Okay, I think I see what you're saying now. Thank you for explaining that. Both loan balances total $108,800.74. I checked my appraisal report from last year and my property is divided on two lots so there are two separate deeds. I didn't realize it but the report says the lender only requested the property with the house be included in the report. I think that was partially how I ended up with the two loans. The property with the house appraised for $111,000. I'm not sure how much the other lot would be. Looking at others in the area and such, maybe $5k? so $116ish total? That would give about $7kish equity then? I'm just trying to get a ballpark, this would be easier if I had a lawyer who would actually answer questions, hah! Pretty sure our housing market has went down hill since I bought it, anyways.

[justbroke]

That sounds about right.