Skip to main content

Buying or Selling? Contact Us Now 910-650-9887

Tax Credit Confusion

Remember back in 2008, when the first-time home buyer tax credit was first rolled out by the government? You probably do, but if you were one of the ones who took advantage of the credit that first year, hopefully, you will remember the details.

The Internal Revenue Service reported last week that about 950,000 of the 1.8 million first-time home buyers who took the credit will have to repay it. That’s largely because in 2008, when it first became available, it was a 15-year loan, repaid to the IRS when you filed your taxes, beginning with 2010 tax returns.

In other words, if you claimed the credit as a result of purchasing a home in 2008, you will start owing the IRS when you file this year’s taxes.
A home purchased in 2009, however, results in no repayment. That year, it was a refund, not a loan.

If you bought a home in during 2008 to April 30 of this year, make sure you consult with a tax preparer or do diligent homework on your own before filing your return for 2010, so that the credit is handled correctly.

The IRS reported that about 73,000 claiming the credit had incorrect purchase dates recorded by the agency. The IRS also reported that 1,326 people listed as dead by the Social Security Administration have claimed the credit.

Leave a Reply

Your email address will not be published.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

google7661972bd9e361df.html Google Privacy Policy