Most recent tax returns

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  • #46939
    Jayne
    Member

    Hi I just attended the workshop. 12/9/2018.Tax returns were discussed in the workshop as 2016 & 2017. I am wanting to use 2017 & 2018 tax returns to qualify. Is there an amount of time I have to wait in order to qualify with those returns? Or as soon as I get 2018 and file them, are they eligible for use? I will owe taxes, but will be paying them in full. Before I knew of the Naca program I was working on being able to be approved with a conventional mortgage. During my research with that, it was to my understanding I would have to wait until AFTER taxes were due (April 2018) to use my 2018 tax info.

    I found this information

    https://www.fanniemae.com/content/guide/selling/b1/1/03.html

    I don’t know if links work on here. Im new to the forum, but the chart on the link says

    If Today’s Date is…. Then the Most Recent Year’s Tax Return would be…
    February 15, 2013 2011
    April 17, 2013 2012
    December 15, 2013 2012

    #46940
    JHarris981
    Member

    You will most likely have to wait if you want to use 2018 returns. That’s because of the IRS’s processing time. I don’t believe your tax transcripts will be available until July 2019 (check their website to verify). You will need the transcripts to verify your submitted tax return. You will need both for qualification. So you could get started in the process by meeting with your counselor and getting your action plan but that transcript will be required by the underwriters.

    #46941
    rochel3628
    Member

    @jayne if you have 2 years of employment with no breaks for more that 30 days 2016 and 2017 taxes should be good. But if you would like to wait on 2018 taxes you will need the W2’s and the 1040’s as @jharris981 said. You have to wait on the “Tax Transcript” for 2018 and whatever you owe in taxes has be paid and you will need to request a 2018 “Account Transcript” that shows you have a “0” balance on your 2018 tax.

    All this will take time so the faster you act the better off you’ll be, and the extra time you can use to save more money.
    You know you’ll owe taxes so thats good that you acknowledged that now, so pay the IRS ASAP “you have to wait on the bill they will send you, are you can call them the speed things up” bc the “Account Transcript” will take time.

    Best of luck i think i’am in that same spot, but i have been with naca a year now.

    • This reply was modified 1 year, 11 months ago by rochel3628.
    #46944
    Jayne
    Member

    Thanks for the replies! I believe tax transcripts take 2-4 weeks. When filing my taxes online it automatically shows me what I owe and I have the option to pay in full. I don’t have to wait to see how much I owe. So earliest I can file is Jan 29. Lets say it takes the full 4 weeks and the transcripts are available end of Feb. THEN can I qualify with 2017 & 2018. Or do I still have to wait because the most recent years are technically 2016 & 2017 due to the fact taxes aren’t due until April 15th.

    #46945
    rochel3628
    Member

    @jayne you only need the most recent 2 years of taxes. You can be approved with 2016, 2017 taxes, if all the above conditions are inline. But if you would like to wait on 2018 tax all the stuff i mentioned will need to be done.

    • This reply was modified 1 year, 11 months ago by rochel3628.
    #46948
    JHarris981
    Member

    @Jayne you’d be good to go with the 2018 taxes since the transcripts would be available at the end up Feb. It seems that filing electronically speeds up the time that the transcripts are available to you (I’ve always filed paper versions so my wait was a bit longer bc of the IRS’ processing time for paper returns). As long as your transcripts are available you’ll be in good shape. No need to wait until after April.

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