First-time homebuyer tax credit may translate to IRS payback problem

The $7500 first-time homebuyer tax credit from two years ago is coming up on the first year of repayments due in this year’s income tax cycle, due April 18. The “tax credit” extended to homebuyers who purchased homes between April 8, 2008 and January 1, 2009. Those who qualified for the credit are entering the first tax cycle where that credit must begin to be repaid. You can read the full story from the Washington Post here…

This entry was posted in The Buzz. Bookmark the permalink.

2 Responses to First-time homebuyer tax credit may translate to IRS payback problem

  1. If you read that you have to pay back the home buying tax credit you received. Don’t panic yet!!!!

    According to the IRS: “The first-time home buyer credit is similar to a 15-year interest-free loan. Normally, it is repaid in 15 equal annual installments beginning with the second tax year after the year the credit is claimed.

  2. Asiantv says:

    Assuming that you qualify properly in all other regards for the tax credit, you are eligible to receive 10% of your home’s purchase price, up to a maximum of $8,000. You can claim the credit when you file your income tax return for 2009, using Form 5405. Be sure to include copies of your HUD settlement statement as proof of your purchase.

    Your taxes will be reduced by $8,000 for 2009′s return. If you do not owe that much, any excess will be refunded to you via the IRS. Understand, however, that the $8,000 refund is considered taxable income for 2010.

Leave a Reply

Your email address will not be published.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