Details on First-Time Home Buyer Tax Credit

By: Diane Tuman, Zillow Content Manager | January 29, 2009

Is the economic stimulus package just another band-aid to stem a wound that requires a tourniquet? Late Wednesday, the House passed President Obama’s $820 billion stimulus plan and next week, it goes before the Senate. According to CNN, part of the stimulus bill is a $7,500 tax credit for first-time homebuyers, which is legislation that is now active, but the bill has been essentially re-worked. Instead of the tax credit being repaid over 15 years as prescribed by the Housing Recovery Act, this new plan means first-time homebuyers get the money outright — no need to repay.

Some of the details (from CNN):

To be eligible, buyers cannot have owned a primary residence for the past three years.
The new home has to be used as a primary residence.
The credit phases out as income rises above $75,000 for singles and $150,000 for couples, and disappears entirely at $95,000 and $170,000, respectively.
To apply for the credit, just claim it on your return. No other forms or papers have to be filed.

Will this be the cure-all for our housing situation? No one knows. But, with low mortgage rates and this kind of tax incentive, this could potentially jumpstart the jittery homebuying market.

Stumble it!
Categories: 8000 tax credit, Mortgages, Real Estate Industry

Comments

285 Comments so far

Jon on January 29, 2009 11:43 am

This didn’t extend the end-date of the program? (july-1st ‘09)
Amy B (from Zillow) on January 29, 2009 1:23 pm

Difference from the first program is that first-time homebuyers no longer have to repay the $7500.
Drut on January 30, 2009 5:52 am

Nice! This will be very helpful.
DebtFree on January 30, 2009 9:27 am

$7,500? $7,500?

As if the problem with inflated $600,000 shacks was a matter of $7,500.

That’s 1.25%. Instead, I’ll take a 20-30% price reduction in 6-12 months.
Doc Rock on January 30, 2009 11:29 am

I qualify for the tax credit b/c I closed on home on May 1st, so I AM eligible for the credit, but according to what is in the currently proposed stimulus package, I will STILL have to repay MY tax credit, but those that qualify for the EXACT SAME tax credit, but who closed AFTER January 1st (instead of the original April 9th date) WON’T have to repay it. Now how fair is THAT?
Why should I have to repay mine but they dont have to repay theirs.

Either everyone who gets the credit should have to repay it, or no one who gets it should have to repay it. It make no sense, and I emailed Sen Isakson of GA, who sponsored the new Bill (Senate Bill S.253) and told him so. I encourage everyone do so as well. Let your State Senator and Congress person know as well.
Jessi on January 30, 2009 5:57 pm

I think it is a great thing! I am looking to buy a house for the first time right now. 23 years old. I need that money! It makes me want to buy a house before the end date- June 10th. I think we are on the right path to bringing the house market back up. I have a lot of friends that are now renting. They are motivated now to buy!!
chris on February 1, 2009 8:57 am

Where did you find out that if you close after Jan. 1 2009 that the money doesn’t have to be repaid? I just met with my accountant and he told me even if you purchase in 09, you still have to repay the money. I am interested in knowing who is accurate.
Diane Tuman on February 1, 2009 9:22 pm

This is President Obama’s proposed plan. It passed the house, but still needs to pass in the senate. Here is a brief snippet of it in the Washington Post: http://voices.washingtonpost.com/economy-watch/2009/01/rep_rangel_releases_details_of.html
This is what it says:
– Housing:
- Remove repayment requirement on $7,500 first-time home buyer credit for homes purchased after 2008 and before termination of credit (June 30, 2009).
Trey on February 2, 2009 11:49 am

I find myself in the same situation. I waited until October 08 to purchase. I sold my old home over 3 years ago. Why do I have to repay the credit and others don’t? Doesn’t make sense.
Obama’s Economic Recovery House Meetings | Zillow® Blog on February 2, 2009 1:27 pm

[...] OK. Just submit a question and get your questions out there. I submitted one, wanting to know the details of the $7,500 tax credit proposal: Is it only for first-time homebuyers? Do you have to refund the money? What are the deadlines to [...]
Jean on February 2, 2009 3:14 pm

What about all of us who pay our mortgages on time but bought at the top of the market and now are unemployed? Any tax credit for us?
karl on February 2, 2009 4:59 pm

as an example, just to clarify, if i file my taxes, don’t owe anything and am not getting a refund, this credit would give me a $7500 refund? and the proposed legislation in the stimulus plan would take out the part about it being a no interest loan, so no pay back requirements?
rose on February 2, 2009 11:35 pm

Nothing is set yet beyond the original stimulus. I think that IF they pass the stimulus stating that people don’t have to repay the tax credit, they would do it for everybody in the date range. (I would be extremely surprised if the changes do not pass- there are currently proposed modifications to the stimulus package that are even more generous- so we have yet to see what the final outcome is.)
rose on February 2, 2009 11:36 pm

(And to Trey- I have friends who purchased their first home at the end of December and therefore do not qualify in any way for this credit)
Ashlyn on February 3, 2009 10:15 pm

Did Obama’s plan change the cut off date of April,9th 2008 to EVERY first time home buyers that purchased a home in 2008? I closed on my home April 7th, 2008. Only two days from April 9th…I’m really bummed about that, because I could use that extra money right about now. I was just laid off last week, I have good savings, but that 7500.00 will give me a better cushion, just in case I can’t find employment any time soon.
Steve on February 3, 2009 10:29 pm

Alright so I can’t figure this out anywhere - can the OP or anyone clarify for me?

Say I close on April 1, 2009.

Under the current credit (has to be repaid) I can file it retroactively on my 2008 taxes to get the refund money back quickly.

If they pass the new bill (no repayment of credit for home closed on in ‘09) can I still file retroactive with my ‘08 taxes or am I forced to wait until 2010 to file my ‘09 taxes and get the credit money back?

Any advice or info. appreciated!!
rich on February 4, 2009 9:22 am

just wondering how the dates were chosen….why is the beginning date April 8, 2008? what was the rationale behind the second tuesday in April and not just the beginning of the 2nd quarter?
bogans on February 4, 2009 12:11 pm

I have the same question as Steve above. To clarify further, I closed on my first home on January 30, 2009. I was planning on claiming the refund on my 2008 tax return to get the money sooner than having to wait until February or March of 2010. Would doing this preclude me from the treatment (if passed) of not having to repay this $7,500? Thanks for any help you can provide.
dee on February 4, 2009 1:57 pm

why starting from April 9 2008. I bought my house in march 07. Im hurting too. My property tax it jumping outta this world. We are all 1st time buyers
Patty on February 4, 2009 10:07 pm

Ok, we bought our house and closed Jan. 25, 2008. Why cant we take the credit? We did buy our home in 2008. I cannot find out why from any one! If anyone knows, Please email me -raidrz06@yahoo.com
steve cahn on February 5, 2009 6:42 am

Under the new plan just passed wednesday the tax credit would be good for one year after it is passed. You can claim it on your 2008 taxes. The part I don’t get is: I make very little money and hardly pay taxes anyway. Will I get a check back up to $15k when I buy a house for cash in 2009?
karyn on February 5, 2009 7:43 am

According to the Washington Post article you will find in Diane Tuman’s response here, the new stimulus plan would allow those home-buyers who purchase after the bill is signed until either the end of the June (original end date) or the end of the year (proposed) to have no repayment on the credit as well as increase the amount of the credit.

For those of us (including myself), the repayment is still in effect if we claim the 7,500 tax break on the 2008 tax filing. I will be emailing the Senator who proposed this as well as my State Sentor and Congressman to let me voice be heard. I feel penalized for purchasing my home the time I did to help stimulate the economy and will still be required to repay the 7,500 while others who waited a few months will now get more of a credit and no repayment.
chris on February 5, 2009 7:59 am

I am not sure how much of an effect this new bill will have. It is stated in the bill that you must put a minimum of a 5% down payment on the purchase of your home to be eligible for the “new” credit. This is part of the reason people aren’t buying homes, they can’t afford to put the money down. They should just leave it at $7500 and eliminate the re-payment, retroactive to April 2008. The people that are in a position to buy, like myself, don’t necessarily have 5% to put down.
Don on February 5, 2009 8:05 am

Remember a tax rebate isn’t a cash back check.
If you do not have 15k of tax liablity it won’t do much good for you.
chris on February 5, 2009 8:13 am

I am pretty sure it’s a true tax credit, not a tax rebate or deduction. So yes, people with limited to no tax liability will still qualify.
Jeanne on February 5, 2009 9:44 am

Questions:

1) I can’t figure out from reading on the various websites if someone would receive this “credit” if they’re owed a refund. Like many IRS/tax things, where it’s possible that you’re eligible, but they don’t want to encourage that category of application, it doesn’t outright *say* that if you are expecting a refund, you won’t receive the additional $7500. However, none of the examples show “if you’re getting a refund of $1,000, you’ll receive a check for $8,500″. Anyone know where to go for a definitive answer on that one?

2) I’m not clear on whether the amendment to have it be a credit, and not an interest-free loan, has actually passed. If it *has*, then does this “loan” then show up on your credit report as a new liability?
Chad on February 5, 2009 11:47 am

People need to seriously do their homework. Please check the
IRS website. There is a huge difference between a “tax
credit” and a deduction. And, yes, the Q & A section of
the IRS guide for the 1st time home buyer does give examples
of how this works. And, no, there are no stipulations on
tax liability - at least not on the low end. What ever you
are getting back or owe, just add 7500 or 10% of the price
which ever is less - as long as you meet all criteria. I
am not privy to all the new changes, but please do your
homework and/or call a tax professional. See the IRS website
Diane Tuman on February 5, 2009 11:50 am

Yes, do your homework, get a tax professional as Chad says. There are a lot of details that can trip everyone up. Also, as of now, it’s not a law yet! There’s still a ways to go.

Here’s the amendment, as proposed by Senator Isakson: http://isakson.senate.gov/Amdt_106.pdf
Steve on February 5, 2009 12:31 pm

^ Looks like it CAN be applied retroactively to 2008 taxes.

“The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.”

See http://isakson.senate.gov/press/2009/020409housing.htm
Ruhi on February 5, 2009 12:40 pm

If I understand correctly, I may not qualify for the new “extended - no-pay-back” version of tax credit because it good for purchases after Jan 1, 2009. I closed on Dec 30th, 2008. It will NOT be fair to loose out on $15,000!!!
Ruhi on February 5, 2009 12:42 pm

If I understand correctly, I may not qualify for the new “extended - no-pay-back” version of tax credit because it is only good for purchases made after Jan 1, 2009. I closed on Dec 30th, 2008. It will NOT be fair to loose out on $15,000 real “credit”!!! I can still borrow $7500 interest free to be paid back in 15 years but…
Marko on February 5, 2009 2:30 pm

It is very speculative on the qualifications. I am under the impression that if you purchase the home within one year time frame of the bill enactment, that you will qualify. For example, If the bill was enacted and active as of 02/05/09, then you would be eligible from 02/05/08 to 02/05/10, which is a one year time frame. Any insight anyone? I purchased mine in 03/28/08.
Darryl on February 5, 2009 2:40 pm

What happens if the taxpayer receives the credit, planning on purchasing a house before the deadline and is unable to do so. When & how will the taxpayer have to pay back the credit and will it still be interest free?
karyn on February 5, 2009 2:40 pm

Marko - The one year is only going forward so if it was enacted 2/5/2009 then the eligible taxpayers would purchase a from from 2/5/2009 until 2/5/2010.
karyn on February 5, 2009 2:42 pm

You have to actually purchase a home in the timeframe. You would not be able to get the credit if you haven’t purchased the home or do not meet the qualifications.
vf on February 5, 2009 2:52 pm

Why April 9?!?!?! I purchased 2 weeks before (March 26)…I know there has to be people who were even closer than that…I would definitely like to hurt whoever picked that date, lol
mm on February 5, 2009 4:12 pm

Steve–I’m not sure that’s what it means. The first line of it states “to stimulate the nation’s declining housing market by offering a $15,000 tax credit to individuals who purchase a home in the next year.” Which means it doesn’t go back to 2008. Also, I thought sunset meant that it stops or is being replaced. So I don’t know how it will turn out for 2008 homebuyers. All I can say is to call your Senators. They “unanimously approved” it but the details can still be worked out from now until the stimulus passes.
mm on February 5, 2009 4:29 pm

Steve–I’m not sure that’s what it means. The first line of it states “to stimulate the nationâ€™s declining housing market by offering a $15,000 tax credit to individuals who purchase a home in the next year.” Which means it doesn’t go back to 2008. Also, I thought sunset meant that it stops or is being replaced. So I don’t know how it will turn out for 2008 homebuyers. All I can say is to call your Senators. They “unanimously approved” it but the details can still be worked out from now until the stimulus passes.
Josh on February 5, 2009 8:14 pm

I think those of us who purchased a home in early 2008 are getting shafted. I closed on March 31- and now I am going to miss out on 7500/15000 (whatever it ends up being for the 2008 folks).

Once they decided to make it retroactive to 2008, they should have done it all the way back to January 1. What is the sense of April 9th? Now we get to see the section on our 2008 tax return for the First Time Homebuyers credit, but we get nothing. Never seen or heard of a tax credit that only applies towards purchases for a certain part of the year.

Want a tax break? Put solar panels on your house in January, have twins in March, expand your home office in July, take a business trip to Calcutta in November. It won’t matter when, as long as it was 2008. Oh, you bought a house for the 1st time? Hope it was after April 9th.

Write your congressman, maybe it’ll help. I wrote my representative and both senators, and the president. I wrote letters to the editors of all the newspapers around here. If you are getting the shaft, you should do the same.
concerned on February 5, 2009 8:46 pm

if you go to the above link posted by Flexo it specifically states “allow a waiver of the the first-time home buyer tax credit repayment requirement for residences purchased after December 31, 2008, and before July 1, 2009;” So all who originally qualified for the 2008 period are excluded from this new proposal?
Mike Seitter on February 6, 2009 1:04 am

257,000 100% DISIABLE VETERAN’S SHAFTED !!
I am a Vietnam veteran 100% disabled due to P.T.S.D.
100% disabled (mentally or physically)vets receive tax free compensation from the VA. No where can I find any info about how we can apply for the housing tax credit when we do not pay federal or state taxes on the compensation we do receive.
Many say boo ho but we are why the country is still free.
We are told to use the VA loan system as no down payment is required and the VA has a partial mortgage refund to the lender should the vet declare foreclosure. Only problem with this is that the VA mortgage rates are nearly a percentage point higher than either the FHA loan or the Conventional loan. Today’s VA rates are .875 higher than conventional loans and the VA payment on the same amount and time period is $110.00 higher each month.
Michelle on February 6, 2009 10:30 am

I definately agreet that us who bought our home in 2008 but before April 9 are getting shafted! We closed on March 31 and really could use that money! I def agree that it should be for anyone that bought in 2008 from Jan 1st!!!! I would love to know why they chose April 9
karyn on February 6, 2009 10:32 am

Michelle and others, the date of April 9th was around the date the bill was signed to stimulate the economy last year. Just like with the change in the bill, it will be from the date they sign the bill making it law.
cathy on February 6, 2009 3:08 pm

well my coworker whom bought her home in 2006 claimed the credit up to 7500 and she got it back today, no lie. i told her that she did not qualify and she said how will they know and sure enough they sent it to her. she said she needed to pay bills and will worry bout it when they ask for it back.
Lynn on February 6, 2009 3:58 pm

The amount doesn’t really bother me ($7500 vs. $15000) I closed on November 6, 2008 so I would qualify for the $7500 credit but I won’t take it if I have to repay mine and those that get the $15000 credit not have to repay theirs. If that’s the case, they can keep their credit and the economy can continue to stay in the toilet! I don’t need another loan I have to reapy - how is that helping me? Without the credit, I will actually owe over $1000, which is fine with me. Pay it, be done with it, and not have to worry about paying back even more to the government than I already have!
Lynn on February 6, 2009 4:04 pm

And I already emailed both of my state senators about this bill, but I don’t expect any response. It’s a done deal and I don’t see them really caring about what’s fair to the people of this country. The bill should have been passed with NO REPAYMENT expectation whether you qualify for $7500 or $15,000. If they cared about what was fait to all people, they would have written that into the bill and it’s not.
Lynn on February 6, 2009 5:02 pm

You may not even qualify for the full $7500 or $15000 - I have prepared my taxes BOTH ways; with the $7500 credit and without it. Without taking the credit “LOAN” I would owe the IRS $1058; if I take the credit I will get a refund of about $4900. My first time home buyer credit only came out to be $5995, not $7500. So do I just pay my dues of $1058 and forget about a 15-year loan just to get back a refund of $5000? I have a 30 year mortgage already, why burden myself with having to remember to claim this stupid tax on the next 15 years of tax returns.
paul on February 6, 2009 6:25 pm

@ lynn: think of it as a 0% interest $7500 loan. hell, if you just put that money in the bank or even better invested it, you’d make money on the deal. @ everyone: wow, all this whining. why don’t *i* get what *he* gets? *she* got *more* than me! waaah. honestly, you all sound like a bunch of kids.
Glenn on February 6, 2009 7:55 pm

I purchased for the first time in Feb 08 and from all I have read they are not going to back date the tax credit, however I also already filed my taxes, so can I go back and try to amend my taxes to try to get the credit and as someone earlier mentioned that they did and worry about proving it later? I am unemployed laid off in September 08 my house is in foreclosure the money would stop foreclosure is it worth me giving it a try?
mm on February 6, 2009 8:18 pm

Glenn, I would highly suggest against doing that. I am sorry for your circumstances and understand it seems like a good short term solution for you now. But if you get caught it is not just about paying it back but it is illegal–tax fraud–which could result in imprisonment (see below). Yes, that does mean you have to get caught—but is it worth the risk? In the long term it is not the best solution.

Title 26 USC § 7206(1)

Fraud and false statements

Any Person who… (1) Declaration under penalties of perjury - Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; shall be guilty of a felony and, upon conviction thereof;

Shall be imprisoned not more than 3 years
Or fined not more than $250,000 for individuals ($500,000 for corporations)
Or both, together with cost of prosecution
Jack on February 7, 2009 7:45 am

I believe the new stimulus bill said “Rescind the requirement to repay the $7500 first time home buyer tax credit.” That means anyone who took the credit is no longer required to repay it. Rescind means to “take back.” Remember, tax laws can be retroactive to previous years. Since the $7500 credit is a new tax benefit beginning last year and nobody has started the repayment the requirement to repay can therefore be rescinded.
But please by all means continue to contact your senators and congressmen to push the issue. People are in dire straits and it’s time “We the People” got a bailout! God Bless.
Lani on February 7, 2009 8:35 am

Does anyone know if the dates will change? I purchased my home April 8th, and I just was laid off. We are suffering just like everyone else, and we are left out because we purchased our home a day before. Even if we had to pay this credit back, I wouldn’t mind. The extra 7500.00 right now would help my family out so much right now.
Lynn on February 7, 2009 9:25 am

We don’t know anything definite at this time. After this weekend more details may come out. The bill was just proposed and hasn’t been actually written in yet. But if you were just laid off, do you really want to be burdened with another loan for 15 years? It might help out right now, in the short run, but how about the long run? I am waiting until the very last minute to file my taxes until I know for sure what the outcome will be. If I have to repay, I’m not taking it.
Tv on February 7, 2009 11:07 am

If I bought a house in May 2008 but have not claimed the $7500 credit yet, will I still be able to get this if the new bill gets passed? It sounds like I will miss out on both the $7500 and $15000 credits. Is this correct? Should I hurry and file my 2008 taxes so I get the $7500 credit?
Cindy on February 7, 2009 4:00 pm

Jack - I think you’re referring to previously-proposed draft language - before both House and Senate agreed on the $15,000 homebuyer credit. I’ve read the most up-to-date proposed bill and the repayment requirement is not rescinded for the 7500 loan - that lanuage was stricken from the Bill. Sorry - but I believe that the 7500 loan repayment terms still remain in effect and will once this Bill is passed.
Doc Rock on February 7, 2009 4:55 pm

The way I see it, why take the chance of missing out on both credits if you qualify for the old $7500 credit? I filed that week when I heard that this new bill will sunset the old credit once Obama signs it.

If you file now, and a better deal comes along, you can always amend your tax return.

Losing out on not having to repay sucks somewhat, but right now, a $7500 tax free 0% interest loan is too good to pass up, especially considering they are simply loaning me my own money before it is withheld from my future paycheck for the next 15 years. I ALWAYS get at least a $1200 refund. So now, I will only get a minimum of a $700 refund. If I adjust my withholdings by $45 a month I will not even see a difference in my refunds.

But why let Uncle Sam earn the interest on my future earning when I can instead. Taking the credit is a no brainer for someone in my situation.
Doc Rock on February 7, 2009 7:06 pm

One more thing to remember is that the $500/$1000 credit for individuals/couples is pretty much a sure thing. It’s one of the cornerstones that Obama has repeatedly said was non negotiable.

If you qualify for the old credit of $7500, and you file now, before the stimulus package is signed into law, you, like I, will have to amend your tax return in the Spring to get the individuals/couples credit. Cool! Another $500 check likely in a few months.

I like getting some of my tax money back, so anytime they wanna cut me a check, I say fine by me. Ppl can whine all they want. Every dime I get back from Uncle Sam this year is either mine in the first place, or I’m paying it back without interest. That doesn’t make me a mooch off the Govt dole. That make’s me fiscally shrewd. And it doesnt cost anyone a dime but me.
Doc Rock on February 7, 2009 10:40 pm

UPDATE!

IF YOU QUALIFY FOR THE OLD TAX CREDIT YOU MUST FILE NOW, BEFORE OBAMA SIGNS IT INTO LAW!!!

Isakson’s press release reads: “The amendment would sunset the current $7,500 housing tax credit on the date of enactment.” What does the term “sunset” mean there? In this context, the term “sunset” means that the $7,500 new home buyer tax credit would be supplanted by the proposed $15,000 credit, which applies to all home purchases–not just new homes. “If you are operating under the $7,500 [credit], that’s the one you [have],” says Joan Kirchner, Sen. Isakson’s Deputy Chief of Staff. “Then, from the date of enactment forward, the new one takes over and nobody else gets the old $7,500 [credit].”

That last sentence makes it official as far as I read it.

FILE NOW IF YOU QUALIFY, OR YOU’LL BE SORRY!

See #2 below

http://www.usnews.com/blogs/the-home-front/2009/02/06/the-15000-home-buying-tax-credit-6-things-to-know.html
Isaac on February 9, 2009 9:15 am

I was unaware of this altogether until the day after I filed my taxes, I purchased a home last year and closed Dec 31st 2008. Is there a way I might still see this credit? Thanks for the help!
Brooke on February 9, 2009 10:07 am

Stupid. My husband and I buy a home in November of 2008 and work our hinys off to make the payments. Our friends, who suck at making money and being responsible can’t afford a home until right about now. So they’ll buy one, and get the 7500 tax credit we got, but they don’t have to pay it back, like we do. Should we not have tried so hard to save up and buy four months ago? We should have been poorer at the time I guess. Why can’t people still getting the 7500 credit before July of 2009 still have the repayment terms to be FAIR???
Guy on February 9, 2009 10:53 am

Brooke,

According to the plan, YOUR interest free loan would actually be forgiven. So you wouldn’t have to pay it back. Read the plan and understand it before you whine about it.

Grats on buying your house a few months before other people and then being a snob about it though…

-Guy
Doc Rock on February 9, 2009 11:14 am

Guy,

Can you provide any links to substantiate that those buying b/w April 9th 2008 to Dec 31, 2008. I have read the latest Bill and amendments and see no language that says the $7500 tax credit will be forgiven for those purchasing homes on the dates I listed in this post?

I hope you are right, but Ive seen nothing in the actual language of the Bill and it’s amendments to support your claim. Lots of speculations on various websites, but nothing in the actual Bill itself.

Can you point me to anything in the Bill itself that I have overlooked?

Here’s a link to the latest Amendment that I ahve seen.

http://isakson.senate.gov/Amdt_106.pdf

Thanks, DocRock
Lynn on February 9, 2009 11:36 am

Isaac - you can file an amended return or an extension if you want to claim your $7500, but understant that at this time, you will have to repay your “loan” over the next 15 years.

Guy - we have read the plan and WE (those of us that closed BEFORE this new plan goes into effect, will have to repay our $7500). Those that purchase within the new date span that hasn’t been released yet for the new bill for the $15000 will NOT have to pay it back. I have read if over and over many times and the new plan will not override the 2008 existing one.
eekaboig on February 9, 2009 12:11 pm

question-i bought a new house in december 08. i was divorced october 08 and i was put on the deed of my ex’s house with a quick claim for “rights of survivorship” as were his mother and father. there was never a mortgage on the house because his father paid cash for it. anyway, after the divorce i did a quit claim on the house and removed my name. does this disqualify me for the first time home buyers tax credit?? say it isnt so!!
Pete on February 9, 2009 1:21 pm

So why is it that all first time homebuyers on 2008 aren’t getting a check? This must get retroacted to all of 2008, not just April 9 and later! Ludicrous!
Brooke on February 9, 2009 4:14 pm

Guy,

You must feel like an idiot. Everything I have read says it wouldn’t be retroactive. You may need to look this word up in a dictionary. See Lynn’s comment as well. As far as whining, I am perfectly justified. Not being snobby either. My husband is 19, I’m 18, we both work full time and struggle to keep our jobs for $10/hr all while saving money and trying to attend college. How are we supposed to know waiting two months would forgive us of repaying $7,500? Why should anyone get $7,500 for free when we weren’t notified of this tax credit being subject to change the terms to FREE. Go do your homework and lay off the drugs!
Doug on February 10, 2009 2:32 pm

I have not purchased a home. My wife and I plan on purchasing in the next few months.

Am I able to claim this credit NOW and apply the money towards the purchase?

Or, If i purchase in May of 09, will I have to claim the credit on my 2009 tax return.

Any help would be HUGE. Thanks!
karyn on February 10, 2009 2:40 pm

Doug, you must purchase the home first before you can apply for the credit. If you purchase it in May 2009, then you will need to wait to file for the credit on your 2009 tax return. By then, some of the requirements may have changed so make sure to review the IRS.gov website regarding how to claim the credit on the 2009 tax return.

Happy househunting!

For those who have already filed your taxes and qualify for the credit, you will need to amend your tax return. Before doing so, go to the IRS website to ensure you meet the requirements.
karyn on February 10, 2009 2:42 pm

Actually Doug, the website: http://www.irs.gov/formspubs/article/0,,id=203083,00.html

It does state if you purchase a home between December 31, 2008 and July 1, 2009 you can choose to file it on your 2008 tax return. Hope that helps.
Steve on February 10, 2009 2:43 pm

Karyn,

Not entirely true.

According to the Senator Isakson’s office, you CAN APPLY IT RETROACTIVELY to your 2008 tax return.

See the link posted above (http://www.usnews.com/blogs/the-home-front/2009/02/06/the-15000-home-buying-tax-credit-6-things-to-know.html) for the following quote…

“Can I take the credit during tax year 2008? Yes, says Chris Cook, a legislative assistant to Sen. Isakson. Even if you buy a home in 2009, the provision would enable you “to file your taxes as if you purchased your home on December 31 of 2008,” he says.”
karyn on February 10, 2009 2:49 pm

Yes, Steve…I added another comment to the same affect. Thank you for clarifying.
Steve on February 10, 2009 2:52 pm

Yup. Of course, as far as most can tell right now you do have to close AFTER this bill passes… so if you’re near that step right now make sure you delay it a couple weeks if at all possible!
Misha on February 10, 2009 3:30 pm

Yes but you must purchase before April 15th in order to amend your 2008 return. If not then it counts towards 2009’s return. The new credit is effective one year from the enactment date, so there was an extension on the July 1st deadline.
Andy on February 10, 2009 8:00 pm

8 months later (from the original plan) and the home owner credit has doubled and no repayment required. Just shows the housing market is getting worse than better. Soon the government will be buying entire houses for folks.
Ashley on February 10, 2009 9:17 pm

Is there any talk of the dates changing??? Why April 9th 08? I closed April 3rd and I want the $7500 “loan”… Any advise?
brandyn on February 10, 2009 9:49 pm

i’m lost for words and full of questions. We closed on April 1 2008. What the hell do we do? I’m confused. Can someone tell me what’s going on? Brandynlyall@yahoo.com

your input is greatly appreciated
Doc Rock on February 10, 2009 11:49 pm

Here is some disheartening news.

From Politico.com….

“The added Senate breaks include a $15,000 homebuyer tax credit that has proven more costly than first advertised and could very well be dropped as part of the effort to scale back the package.”

I have also heard this from an email I received from Ken Gear at http://www.fixhousingfirst.com today…

“There is a strong push to eliminate or drastically scale back the home buyer tax credit. Several newspapers have editorialized against it and a number of interest groups have voiced their opposition”.

This isnt looking so good.

http://www.politico.com/news/stories/0209/18700_Page2.html
Lynn on February 11, 2009 5:13 am

I think we all need to wait until next week to get some of our questions answered as to dates changing or not. The Senate and Congress are suppose to be working on the details that they can both agree on and then we’ll know more once the bill gets signed by the President. We can’t assume what’s going to happen at this point. Yes, it would appear the dates would need to be changed on the first bill ($7500) because it would appear the date range on that bill will overlap with the date range on the new bill being proposed ($15000). There will be lots of people who get “screwed” if the beginning date of the $7500 bill doesn’t change. And there will be those people that get “screwed” and have to actually have to pay their loan back. But we’ll all know more next week hopefully.
Isaac on February 11, 2009 7:40 am

I don’t understand how anyone could feel they’re getting “screwed.” We’re possibly getting something we didn’t have before, and so what if other people qualify for more, that doesn’t change anything in my situation and the housing market is still declining so I think it is warranted. Anyone who feels like they’re being wronged doesn’t have to file for this.
Elizabeth on February 11, 2009 10:42 am

When is the bill expected to be finalized? Anybody know a date for this?
Elizabeth on February 11, 2009 10:43 am

Oh and Issac - I’m sure that if you purchased your home on April 7th, 2008 you would be singing a different tune about being “screwed”.
Lynn on February 11, 2009 11:02 am

There isn’t a definite date on when the bill will be signed. As soon as the president gets the final copy and he signs it. Sometime early next week.

And by getting screwed I was referring to the people that may miss out on the whole deal because they closed a week or even a day before the start date of the original bill. And yes, those that have to repay are getting screwed because you aren’t really getting anything for free.

If you would like another 15 year burden on top of your 30 year mortgage, then by all means file and get your “loan”. That really isn’t helping the economy at all IMO; just something else you have to worry about claiming on the next 15 years of tax returns. Are you going to remember to claim your 1/15th portion of your loan when your’re 65 years old? Like we don’t have other things to worry about.
John on February 11, 2009 11:02 am

I hope I am wrong but I have heard that if the new stimulu package does pass the 15k is a maximum amount that can be used to waive outstanding federal income tax. Does this mean if you do not owe any federal taxes and buy a home (first time buyer) no credit what so ever would apply? Plese tell me this isnt true!!
Steve on February 11, 2009 11:13 am

John - Actually as it’s currently proposed, that is completely true. So if you’re thinking about buying you might want to try and close ASAP before the current $7500 is superseded.
John on February 11, 2009 11:30 am

Thanks, Steve. I feel like this is very unfair. The governement is providing an incentive to those who dont pay their FIT. I have always paid my taxes on time and what type of incentive do I get being a first time home buyer? Even if I go out this weekend, find a property, put an offer in that is accepted I still would not be eleigible for the current $7500.00 credit unless I closed prior to the new bill passing. Is that right?
Isaac on February 11, 2009 11:30 am

Lynn

I will not argue that it would be inconvenient, if nothing else, just remembering the repayment for 15 years.

I have been waiting to hear an outcome of the house stimulus package but the more I read I see it looks like the opportunity even for the “loan” will be wiped should this new amendment pass. Similar to what Steve just mentioned. If that’s the case I’m all over filing this thing like white on rice. Anybody else with more knowledge on that detail? I don’t have any “outstanding federal income tax”
Steve on February 11, 2009 11:37 am

John - yup, you have to close before the bill’s signed as far as has been made clear so far.

Personally, I have tax liability so even as a first-time homebuyer the new credit is favorable to me over the old one. But I absolutely empathize with the many people who are probably out there somewhere along in the house-hunting/buying process based on an expected $7,500 and are now finding out it may be gone. So it goes, I suppose.
Steve on February 11, 2009 11:42 am

Isaac - Just to be clear, since I don’t think I answered your question, let me try an example.

Please note this is assuming a home purchased for $130,000.

Old Credit:
- Owe $0 in taxes, pay $0 in taxes, receive $7500
- Owe $5000 in taxes, pay $6000 in taxes, receive $8500 ($7500 credit + $1000 refund)

New Credit:
- Owe $0 in taxes, pay $0 in taxes, receive $0
- Owe $5000 in taxes, pay $6000 in taxes, receive $6000… (see below)

* Home is $130,000 x 10% = $13000 credit
* Credit divided over two years = $6500/year
* Tax liability is $5000 so credit is $5000 (5000-6500 … you don’t get to keep any credit money exceeding your liability)
Isaac on February 11, 2009 11:50 am

Thank you very much for the clarification Steve
John on February 11, 2009 11:58 am

This is bull shit.
John on February 11, 2009 12:00 pm

I should just stop paying FIT once the bill passes and be sure to close on a house before the end date of the “credit”. This is no different then others who decide not to pay/underpay FIT>
Lynn on February 11, 2009 12:39 pm

I’m not sure the new bill will wipe out the old bill for the $7500ers ; keep in mind there are people that have already filed their taxes and claimed that, so they will get it. I qualify for that as well but I am holding off on filing my taxes just to see what the new bill says. That doesn’t mean that by waiting until the new bill passes I will miss the old boat. Say someone is waiting for tax documents to be mailed from a bank or something; just because I didn’t get my tax information on time and get it to my accountant by the time the new bill passes shouldn’t make me not be eligible for the old $7500.00 credit.

I do believe that even of you are getting a refund before you ever claim your $7500 you will still get additional money back if you take the credit. I did a sample tax return on one of those free websites two ways, taking the credit and not taking the credit, and both ways refunded money. And by taking the credit on top of my refund I got LOTS of money back. Would be nice if that were the case, I actually owe money this year to Uncle Sam so taking the credit would really help me out. Like I said before, I’m just not sure I want to be burdened with this 15 year committment.
joe on February 11, 2009 1:18 pm

My wife and I close on our house March 2nd, 2009. We haven’t done our taxes as of yet because we want to see what changes are coming…. Question is… If congress passes the bill, would we be able to claim the new credit on our 2008 taxes for our home purchase in 2009. Also… what did Steve mean when he said the credit gets broken down over two years? This is news to me.
Steve on February 11, 2009 1:31 pm

Per earlier posts and clarification from the Senator’s office (the one who added this amendment) you CAN file it retroactively for houses purchased in 2009 on your 2008 taxes.

Regarding breaking it over two years… it’s up to you whether you do that or not. For example in the numbers I listed above the tax liability to the IRS ($5000) is for someone making roughly $40000-$50000 a year, depending on your deductions, 401k contributions, etc. So since you only owe $5000 in taxes (and, in my example above, you get a $13000 credit based on the $130K house) then you’re only getting $5000 credited to you - that’s if you take it all at once.

The current proposal, however, lets you split it over two years such that half (up to $6500) is applied this year and the other half next year. So as in my example above, you can take up to $6500 off your taxes THIS year and then again NEXT year. For people making a more modest salary (such as in the $50K range as in my example) diving it up like this makes a lot more sense. Otherwise you’re basically throwing away thousands of dollars you could apply to next year’s taxes.

Hope that was a vaguely coherent explanation!
joe on February 11, 2009 1:44 pm

I guess this is a little more complicated than I first thought. Our purchase price is $93,000, and I figured the tax credit would be $9300. My wife and I made $55k in 2008 and broke even on our taxes so we don’t owe or have a refund. In your professional opinion, should I have a tax professional do my 2008 taxes to take full advantage of the credit or would the average joe be able to figure it all out.
Steve on February 11, 2009 1:51 pm

In your case, I don’t think it’s all that complicated. Now, I’m single so I haven’t paid much attention to the rules and numbers for those filing jointly. That said, your $9300 number would be correct. While you don’t owe or expect a refund, your liability (what you did pay already or had withheld) is what you’ll get the credit off of. Based on your income, I’m pretty sure it makes more sense to split it up over two years. So basically, whatever you paid in taxes this year you should be able to get up to $4650 of it back. If you paid less than that, then you get whatever you paid back.
Doug on February 11, 2009 2:09 pm

Steve,

Is that 15k per couple or per person?

So, if my tax liability is 6k and my wife’s liability is 4k

So we as a couple get 10k?

Thanks.
Steve on February 11, 2009 2:17 pm

I do believe it’s $15K per HOUSEHOLD… so you can only apply $15K to a single house purchase, regardless of whether it’s married/single/roommates/whatever.

And yes, if you bought a $150,000 house you qualify for up to $15K with the new credit. If you two have a total of $10K owed then you can get $10K back in one year (and that’s all you ever get back) by applying the whole credit to one tax year. Or you could get $7500 back both years, assuming you owe at least $7500 (liability) in the second year.
Kim on February 11, 2009 3:49 pm

It really suck! We bought our house on March 24,2008 and missed this credit by fourteen days. People like my husband and I needed this money to fix a roof that has been leaking all year in our home. The house is very old and wasn’t kept up and needs so much work. We used all are money saved just to buy the house.. I don’t understand why?? It should of been if you purchased a home in 2008 the worst year of the all!!!
Cindy Girl on February 11, 2009 4:40 pm

It looks as if the $15,000 credit has been significantly reduced or killed completely.
Real Estate Raj on February 11, 2009 5:07 pm

@Cindy Girl
Its been reduced down to $7500

http://tinyurl.com/latimesRE
Steve on February 11, 2009 7:52 pm

Yep, it looks like we’re now back to something along the lines of the original $7500 credit (of which you’ll get the entire sum regardless of your tax liability) except it won’t have to be paid back.

Given the tumultuous nature of this whole stimulus - especially the housing credits - it seems the best thing at this point is for us to all wait until it’s signed into law and make plans from there.
Steve on February 11, 2009 8:04 pm

Update - here’s what the AP is reporting:

- $8000 for first-time homebuyers
- Purchased from Jan 1 to August 31 of 2009
- No repayment, unless home is sold within 3 years
Riddler on February 11, 2009 8:50 pm

I wonder if I have already filed my return in Jan will I be able to claim the new credit. I close esgrow on March 10,2009 should I amend my return to get the credit of just wait until tax season 2010
Lynn on February 11, 2009 8:52 pm

January 1 of what year? If it’s 1/1/09 - 8/31/09 and you purchased in 2008 you can’t amend, the $7500 is what you get with a repayment committment.
Doc Rock on February 11, 2009 8:58 pm

It is being reported by AP tonight that the $15,000 tax credit has been stripped from the reconciliation bill.

“Working to accommodate the new, lower overall limit of the bill, negotiators effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home, these officials said.”

All this angst, apparently all for naught.

Figures.
Doc Rock on February 11, 2009 8:59 pm

http://apnews.excite.com/article/20090212/D969OUJO0.html
Doc Rock on February 11, 2009 10:08 pm

More from Huffington Post….

“A tax break that allowed businesses to write off losses dating back several years was reduced and a measure providing a $15,000 tax credit to homebuyers was pulled. Both actions shaved a combined $50 billion off the package’s price tag - about $13 billion of it carved from the business cuts. Around $75 billion of tax cuts in total were stripped from the package.”
Riddler on February 11, 2009 10:41 pm

To Lynn I actually filed my returns this year on Jan 20th but I didnt claim the credit because at the time I wasnt planning on buying a home. I started to look a couple of weeks later and now im in esgrow with a close date of 3/10/09. I should just wait to next year huh?
Doc Rock on February 11, 2009 11:11 pm

“January 1 of what year? If it’s 1/1/09 - 8/31/09 and you purchased in 2008 you can’t amend, the $7500 is what you get with a repayment committment.”

Yup. That seems to be the case at this point. Oh well. I took the credit and filed a few days back, accepting that i have to repay.

It’s always possible that the repayment might eventually be waived in some future legislation, seeing how it is such a ridiculously structured “tax credit”, but unless they change it back to April 9th, 2008 date,(which seems extremely unlikely at this point) that’s the way the cookie crumbles.

I am just ecstatic that i can pay off my 8% student loan now. Finally!
Dave on February 12, 2009 8:40 am

Is there income restrictions on the tax credit now? It just states that first time buyers are eliglible for the $8000.00. Can someone please tell all of us the facts and not just speculations. And, how soon are interest rates going to come down to under 5 percent? Thank you!
jayna on February 12, 2009 8:51 am

The credit is now first time home buyers MAY qualify for 8000 credit.
Steve on February 12, 2009 8:53 am

Dave,

See what I wrote above:

———————
Update - here’s what the AP is reporting:

- $8000 for first-time homebuyers
- Purchased from Jan 1 to August 31 of 2009
- No repayment, unless home is sold within 3 years
———————

As far as income limits, if they really amended the old House version as appears to be the case, then the credit starts phasing out at $75K and ends at $90K income.

Some interest rates are already below 5% depending on where you live - there appears to be no government program for that (yet?)in the various stimulus plans.
Steve on February 12, 2009 8:57 am

^ $95K is the top end for income under the old plan, not $90K.
chris on February 12, 2009 9:05 am

Has anyone seen what the requirements are? The 15k version required a 5% down payment, haven’t seen if this one requires the same. I am going FHA and only have to put down 3.5%up front, and don’t really want to up the down payment.
shawn on February 12, 2009 9:21 am

I purchased my home on October 31,2008. Of course I would prefer to receive money that I don’t have to repay, but I was counting on that $7,500.00. All I want to know is, can I still get the original credit that was offered?
Lynn on February 12, 2009 9:37 am

Shawn - you can still get your $7500 credit. I don’t think the IRS is going to go in anytime soon and pull all the forms back now that include the $7500 credit and all the software that includes the $7500 credit information in it with the companies that you can file online with. No I don’t see them doing away with that. Go ahead and file away!
Elizabeth on February 12, 2009 9:37 am

Steve,

Is it completely unlikely that they will change the bill passed in July ‘08 (the original 7500) to inclue the entire year of 2008? Is there any hope? We bought our first home on March 29, and I am waiting to file my taxes. I’m about to cut my losses, and just swallow it. I’m thinking we don’t have a chance.
Lynn on February 12, 2009 9:39 am

Steve - the only thing they would have to change on the previous bill is the end date of the credit. They will probably change that to 12/31/2008 because then they will have an overlap of dates between the both bills.
Elizabeth on February 12, 2009 9:41 am

So I should just file my taxes and forget about the 9 days that I missed the credit by. Sweet.
mrmeeny on February 12, 2009 10:53 am

So I used h&r block. Claimed the 7500. for a FUTURE closing date.
Everything went through.
NOW they are telling me it has been rejected and that the closing date cannot be in the future.
Ryan on February 12, 2009 11:05 am

So, I purchased my house on 4/25/2008. In order to get the $7,500 (repayment option) I need to file before stimulas act is signed? Am I understanding this correctly? They are simply changing the date from 4/9/2008 to 12/31/2008. So I better file tonight? Correct?
Steve on February 12, 2009 11:08 am

I go to lunch and get a bunch of questions - let’s see if I can answer them all. And just a friendly reminder that I’m not a lawyer or an accountant (but an imaging scientist) so I’m just doing my best here!

————————

Chris - It looks like there’s been no down payment % requirement so I think an FHA would be fine. That’s currently what I’m planning on doing for my house.

Shawn - You can still file based on the old plan, this just simply changes the terms (no repayment) for homes purchased Jan 1 through August 31 this year and gives you an extra $500.

Elizabeth - Pretty much unlikely. They’re not very concerned about the past now, this is intended to stimulate the economy by encouraging more people to buy now and in the future. Who knows if it’ll work, but that’s Congress’ theory.

————————

And forgive me if you take offense to this, but to everyone who keeps mentioning how they just missed the credit cutoff dates, etc… well, that’s life! Yup, I’d be frustrated if I missed it too and would have waited if I knew it was coming. But you know what, it happens and there’s nothing you can do about it.
Dave on February 12, 2009 11:16 am

They had mentioned that they were going to remove the income limits. It reads like the credit is for all first time buyers regardless of their income.
Chelsey on February 12, 2009 11:59 am

How unstructured and unfair to every person who already owns a home.

Here everyone, make the biggest purchase of your life and I’ll give you a sweet loan.

Wait why’s everyone stopping the buying? Here everyone, make the biggest purchase of your life and I’ll just give you the money!

If everyone can just hang on six more months they’ll probably pay half your fucking mortgage.

I feel punished for buying when I did. March of 2008 was a stupid time. Wish there would have been a sign…
joe on February 12, 2009 12:01 pm

Just to make sure I am understanding this correcty… we make $55k yr, closing on house 3/2/09 for $93k. We qualify for the full $8000 true credit that does not need to be repaid. We have broke even on our 2008 taxes so we don’t owe or get a refund. Since we haven’t filed our taxes, we can still apply our 2009 purchase to our 2008 taxes and take advantage of the credit and receive a check for $8000 that does not need to be repaid if the house remains in our possession for 3 years. Is this correct?
Steve on February 12, 2009 12:16 pm

Joe - Provided you wait to file until you’ve closed (can’t get clarification yet but I think you have to already own to claim it on your taxes) and the bill has BEEN SIGNED into law, yup.

Given how much this has changed over the last weeks, I’d not trust anything until it’s the law. That said, all signs point to it being applicable retroactively so you should get $8K cash from filing and won’t have to pay any back if you live there 3+ years.
Ryan on February 12, 2009 12:28 pm

Are they getting rid of the April 9th, 2008 date all together? Or will I still be able to get the $7,500 that must be repaid? Anyone?
Cindy on February 12, 2009 12:28 pm

I think the income limits still apply. But who knows, it isn’t law yet so we’ll just have to see.
Chad on February 12, 2009 4:00 pm

Is it everyone’s understand that the new credit also limited the credit to first time buyers again? I know i read the $15000 proposal included all home purchases and not just first time buyers. I recently got married and my wife had previously purchased a home so its my understanding we would not qualify under these terms.
Johnny-Don on February 12, 2009 5:36 pm

We closed on our house 12-23-08, and yea, it sucks if we have to pay it back, but ONLY if someone who purchased only a week later doesn’t have to. I had no problems paying it back, and was fine with it being only a loan, where else can you get a 15 yr no interest loan. I know life isn’t fair, but this isn’t unfair, it’s B/S, they would only have to go back to April of 08, since that date is in the requirements of the credit per the IRS anyway. http://www.irs.gov/newsroom/article/0,,id=186831,00.html Honestly, I have spent hours researching on the net, and haven’t found a definitive answer as to what is going to happen regarding the tax credit repayment, so I really don’t see how anyone can say for a fact that the house must be purchased 1-1-2009 and later in order to not have to pay it back. We will not know until it is passed. What I have done is bookmarked the IRS link I posted previously, because it appears they update it (last update 1/14/09), so my guess is, as soon as it is fact whether to pay or not to pay, it would be changed there.
Traci on February 12, 2009 8:01 pm

If we purchase our first home this year and close on our estimated date, June 1,2009, can we amend our taxes to get the credit after we close? We do qualify, but can’t file to include the home before April 15th to claim the home since we won’t be in the house yet. Do we have to wait to claim the tax credit in 2010 or can we amend our tax return after we close?
Justin on February 12, 2009 10:48 pm

Just to make sure I am understanding this correctly, I’ll ask. I am closing on my house on 2-13-09. According to the new changes I should receive a true tax credit no repayment required. Is this correct? Or should I delay the closing for another week?
Tiffany on February 13, 2009 7:29 am

Wow. So we built a home and closed in December of 2008. We originally signed our purchase agreement saying we could use the Down Payment Assistance program. HOWEVER TEH GOVERNMENT CANCELED THE PROGRAM MID WAY THROUGH OUR HOUSE BEING BUILT. So we had to dish out our savings for the Down Payment. LEAVING US NO EMERGENCY FUNDS. We were told that we could claim the $7,500 credit though so that we could use that a baby EMERGENCY FUND. Well that’s just awesome that they are now saying people who purchased after Jan. 1st of 2009 get $8,000 that doesn’t have to be paid back.

I am just beyond FRUSTERED. I have gotten screwed out of finacnail aid for Higher Education. Now that I’m almost done they raise the amount of Stafford Aid you can get. They tell us that they are lowered the interest rate on the Stafford Sub loans. They don’t tell us this is only for 5 years and only for undergrads. When these students go into repayment and start paying the interest, they are paying at the 6.8%. The only person that is saving money with this new program is the GOVERNMENT! Seriously?
Christy on February 13, 2009 7:32 am

After taking the $7500 tax credit, will it be on my credit report as a government loan?
inger on February 13, 2009 8:18 am

Hey!
i bought MY first house early Dec 08 and i thought for sure i would get the credit. but since my ex had put me on his deed in 07 i can’t?? i have been removed but i never really owned his house…any thoughts?? i was depending on that for upgrades in my new house!
jayna on February 13, 2009 12:02 pm

I emailed my senators and representatives to let them know that I would like the repayment be taken away from the previous legistlature. I would recommend emailing your state officials as well. Let them know your complaints!
RP on February 13, 2009 12:14 pm

I have done the same,I dont think we should have to repay.
Lynn on February 13, 2009 12:36 pm

Sent emails to both of mine already, no response. I don’t really expect one. But I sure get their weekly newsletters emailed.
RP on February 13, 2009 1:08 pm

No response here either but thats all I feel that I can do.I am waiting to hit send on my 08 return but want to see if there are any changes first. We will see…..
anna on February 13, 2009 1:56 pm

So if i bought a house in nov2008 do i have to repay my 7500?
Lynn on February 13, 2009 2:57 pm

Its’ funny….I am waiting to file my taxes also just in case they change the repayment commitment. I keep thinking to myself that if I wait it out they will change that stipulation but only for the people who file after they remove it. But for those that already filed and were “ok with committing” to repay the $7500 they will still have to repay it. It’s funny how we think too deeply about things. I don’t think they will change it, but it makes me feel better to wait and see. Besides, I owe money so I’m not in any hurry to file. Let them wait …..
Lynn on February 13, 2009 2:58 pm

Yes Anna, you will still have to repay. Nothing has changed with the 2008 bill, we all still have to repay if we take it.
Fred on February 13, 2009 3:20 pm

Not really fair. We closed on our first house on March 28, 2008 and are not eligible for anything. Why are there such strict dates for this thing. It is excluding some first time homeowners.
Lonnie on February 13, 2009 6:41 pm

Does anyone know if the new bill still has the wording of sales to close relatives being ineligible for the credit? I hope to purchase one of my parent’s rental properties, and would like to know if I would be able to claim the credit under the new bill.
Andrew on February 14, 2009 7:24 am

I was reading about the bill last night on the CNN website and it looks as though the $8,000 (no repayment passed) Jan 1, 2009 - Dec 31, 2009. With no change to the $7,500 (must be repaid) that I got for closing on my first home on DECEMBER 29th !!! Missed it by three days!?!

With the extra money I could have paid off a little more debt… which in turn would allow me to also have money to improve my new home and spend money where I can’t now. I can’t complain about a $7,500, zero interest loan, but $8,000 free and clear would have been an amazing help to people like us who have $40K in student loans, just bought a house, trying to start our lives…
Kelley Blake on February 14, 2009 11:45 am

I think the whole thing is completely unfair. People who just bought homes are not in danger of foreclosure and they are just getting free money. Meanwhile, other people who work their tails off and have been raped with high interest rates have to lose their homes so that people who are obviously doing ok financially since they were even able to purchase a home at all are given extra money. How will this jump start the housing market? Sorry I don’t feel sorry for the ones who have to pay back their loans, at least they had the opportunity to get one, we bought our house in 2007 and the government isn’t giving us anything, when we bought, interest rates were still high, what is the government going to do for everyone else? That’s what I’d like to know. How can they think it is ok to just hand over all this money to those people, it is our tax money too, why should they be the only one’s to get it. What are they going to do when so many families end up homeless and on the streets with nowhere to go? The government doesn’t care as long as the first time home buyers get their $7500. We had to put down $12,000, we didn’t get a dime of that back. The whole thing is absolutely ridiculous!!!
isaac on February 14, 2009 12:23 pm

Kelly, you didn’t HAVE to buy your home. You signed your name a couple hundred times during closing so at any time you could have decided you didn’t want that interest rate or your loan terms. So many people on here are making themselves out to be complete victims, no one HAD to buy, no one HAD to agree to their loan terms and no one HAS to apply for the home buyer credit. I don’t understand how everyone thinks they just deserve something. For my home purchase I had a price and terms I wanted to stick to and if they weren’t met I could just as easily walk away and rent again. My closing date was pushed off several times and I told them I was about to walk and whaddya know, closed the next week. I just ammended my taxes to apply for the $7500 “loan” and I’ll gladly jump on that as I could make use of the money now, its easy enough to pay back. I have no intention of trying to tell anyone they’re wrong and should conform to my way of looking at it. I’m just saying there were choices along the way for everyone, no one is 100% victim
Mike on February 14, 2009 12:45 pm

I bought my house 31 Mar 2008. Will the new stimulus plan work for me? Are they moving the dates so I can qualify for the first time home buyers credit. This sucks if I don’t. Missed it by a week or so. Let me know if anyone has a new information about this. Thanks!

Mike
Kelley Blake on February 14, 2009 1:40 pm

Isaac,

You are absolutely right, no one made us buy our house but had we known that the gov’t was going to give away free money for homw purchases just a year later we would have waited but we weren’t given that opportunity. We got the best rate we could at the time but rates have dropped, we couldn’t have predivted that obviously. All I am saying is everyone needs help, and I don’t see how giving home buyers during the past few months all this money is going to fix anything except for them. They aren’t using the money for new construction as the original purpose of this credit was for. Most of them probably aren’t even new homes.
Ashlyn on February 14, 2009 1:59 pm

Kelly I agree with you. This gov’t is not helping the people that need it the most. If people can buy homes know, i’m pretty sure they are not laid off or having financial problems. I closed on my house March 31, 2008, how is that fair for me? I need the money just like everyone else. I paid taxes just like everyone else. And everyone that is yapping saying, it’s just the way it is. Give me a break, if you were in the same predicament, you would be complaining too. I was just laid off 3 weeks ago, this money would do me alot of good and give extra cushion, because we all know there are not alot of job even with a degree. I’m just over it already and for the ones that don’t have to pay tax payers money back….have fun now with that extra $$ because you will have your day also. Just like I am having mine. Yes, I am complaining and bitter. I have every right to be!!!!!!!!! I missed the date by a few days!!!!!!
Jane on February 14, 2009 2:03 pm

We purchased our first home at the end of January 2009. Do we get to use that on this years returns or do we have to wait for 2009 returns. ALot of the tax professionals are telling us otherwise, but I keep hearing this year. I am so confused, when do we use this credit?
davidp on February 14, 2009 4:32 pm

I am hearing everyone complain about the fairness of this tax credit. Everyone needs to grow up and realize that life is not fair. Is it fair that I bust my butt for a company for the last 3 years only to be laid-off because I’m low man on the totem pole, while others I out produced keep theirs just because of their start date? I don’t think so. Instead of laying around whining, I went out and found another job to keep food on the table. Wake up and spend more time worrying about how you can help out your family and your country and less time worrying about what your neighbor may or may not be getting.
Liana on February 14, 2009 8:13 pm

Ok I need help ASAP! I am in the process of buying a house. We are not expected to close until mid May (it is construction). My problem is, there was a total lack of communication and misinformation to where we were led to believe that the seller was paying closing costs. Now this week I am told no, we have to pay them all. So now I am stuck with needing $5500. My lender has told me to amend my 2008 tax return to claim the Home Buyer Credit with an anticipated closing date in May in order for us to have the cash needed for closing. Without this credit we are absolutely unable to purchase this home. Is this accurate information I have been given? CAN I amend with an anticipated closing date and receive the credit? I am totally freaking out right now. We had planned to claim the credit after closing, possibly next year to help with initial maintenance and costs. Now I may not even get the house at all!!
Congress Nearing Vote On Economic Stimulus Package « The John Dietz Team on February 15, 2009 8:29 am

[...] http://www.zillowblog.com/details-on-first-time-home-buyer-tax-credit/2009/01/ [...]
Ling on February 15, 2009 3:56 pm

Liana,

Did you have a buyer’s agent?

Whether the seller pays for the closing cost or not should have been spelled out in the contract clearly. Read your contract.

If, for some reason there is restriction on lender’s part what percentage seller can pay for the closing cost, i.e. no more than 2% or 3% of the house price…, then talk with your seller.

Are you putting any money down? These days hardly anyone can get 100% loan for buying a house. Even if you get a 100% loan, I am not sure they also include closing cost.

Think about it. If the house is $200,000, closing cost plus prepaids could be $5000+, if buyer does not bring any money to closing, the lender would have to loan 102.5%. Unless seller is paying the closing cost.

If seller is paying for the closing cost, they may be adding that amount to the cost of the house. If that is the case, the house may not appraise for the amount of the sales price. If the appraisal is less than contract price, lender won’t lend according to contract price.

Re-read your contract and talk to the seller.

If you don’t get the house because it is a 100% or 100%+ loan, it may be a blessing in disguise…

Take care.
Cindy on February 16, 2009 11:46 am

Liana: You CANNOT take this credit in anticipation of closing. You can only claim this credit after you have closed (or if you are constructing - the date you first occupy the house). You certainly will be audited if you claim the credit before this. Good luck.
Steve on February 16, 2009 11:53 am

You can, however, reduce your tax withholdings (i.e. add in a ton of exemptions on your W-4) so you get more in each pay check if you expect to qualify for the credit.
jen on February 16, 2009 12:51 pm

I just went through a divorce last year, and am a single mother with a job that pays less than 10k per year will I quailify or the tax credit?
April on February 16, 2009 4:20 pm

I closed on my house July 23,2008.When I filed my taxes I recieve what I would have gotten back plus $7500.Which is nice.But since then I have been laidoff from work permently and my fiancee is on the verge since we worked at the same place.
When I filed they said we would have to pay it back.Now the new one you do not.Are they going to go back and change the first one so we dont have to pay it back?
It seems unfair that we have to pay it back and the new credit you dont have to.
Alex S on February 16, 2009 5:34 pm

Does anybody know the definition of first-time homebuyer? You have to be first time buyer in the State or in US to qualify for the tax credit under proposed law ?

Thank you.
Steve on February 16, 2009 5:47 pm

The definition of a first-time homebuyer in this credit means you have not owned a home in the past 3 years.
Lynn on February 16, 2009 5:49 pm

April, you are required to “pay back” your $7500, it doesn’t look like they are changing that.
Lynn on February 16, 2009 5:54 pm

You can find all the information about how to and who qualifies on the IRS website:

Only the purchase of a main home located in the United States qualifies. Vacation homes and rental property are not eligible. For a home that you construct, the purchase date is the first date you occupy the home.

Taxpayers who owned a main home at any time during the three years prior to the date of purchase are not eligible for the credit. This means that first-time homebuyers and those who have not owned a home in the three years prior to a purchase can qualify for the credit.
http://www.irs.gov/newsroom/article/0,,id=187935,00.html
Alex S on February 16, 2009 6:30 pm

It is still ambiguous. It says “Taxpayers who owned a main home at any time not eligible..” Does it mean that the opposite (if one doesn’t owe the main, but rental home)will make taxpayer eligible ? I owe the rental property in different State for past 6 years but never live there. Am I considered as a first time buyer? I know in my State I am, never own a property here.
Nick on February 17, 2009 7:39 am

Someone previously asked the same question I have and I did not see a response: my wife purchased a home before we were married. Now we are purchasing a home together: do I or we qualify for all, 1/2, of none of the credit?
Anna on February 17, 2009 9:32 am

Hi I know someone who lied on their return to get the tax credit back. They bought their house Jan. 08, but it says it has to be April 08. The person doing their taxes did not verify the date so they lied. Will they be audited?
Steve on February 17, 2009 9:41 am

Well hard to say for sure, but I certainly wouldn’t do that nor would I have told people about it. Tax fraud is certainly not an offense I’d want to tangle with!

That’s a multiple-year and high-fine offense.
Tom on February 17, 2009 10:43 am

I purchased my home on Jan 15th of 2009 and claimed the credit on my taxes and have gotten it back already. Will I have to repay the money since I claimed it on my taxes before the bill went into effect even though I did purchase the home this year?
Steve on February 17, 2009 10:44 am

Nope, you should now be exempt from repayment. Plus you should also be able to file an amended return to get the additional $500 back.
Isaac on February 17, 2009 10:52 am

Anybody have an idea how long to expect an ammendment to take to process? I missed the non-repayment by a day but I ammended and applied for the $7500 nonetheless.
Liana on February 17, 2009 11:24 am

Well I have now spoken to H&R Block and Liberty Tax Service and they say that YES you can file with an anticipated closing date. This is all driving me nuts.
john on February 17, 2009 1:44 pm

Well I don’t get it to qualify for a loan they need you to be making good salary so u can actually pay your mortgage..but with this stimulus u have to be making 75k or under, over that and it starts fading out..catch 22?? Lets allow people who can barely afford a house to buy one …YEAH!! Here we go again.
Steve on February 17, 2009 1:49 pm

You have a point, and I can’t argue that maybe the income limits should have a location-based aspect to them. But on the other hand, there are MANY people who can more than take advantage of this offer. Plus, even in all but the most expensive areas most people can afford a house on $75K. Can they afford a 4 bedroom, 3 bath, 3000 square foot place? Well no probably not, but that’s not exactly necessary either.

For example, I live in Dayton, Ohio and will soon be a first-time homebuyer. For $130,000 you can get a 3 bed, 2 bath, 2-car garage house that’s about 25 years old in one of the best school districts in the state. And that’s easily affordable on an income of $45K. Surely it’s way different in New York City but there are plenty of places (I’d venture most of the country) where you can certainly buy a house making way less than $75K a year.
john on February 17, 2009 1:57 pm

Well I live in CA and the average house is still 300K So 75K a year..good luck! They should have put more thought into this and taken into consideration the state Averages instead of a gross evaluation. I’m about to buy my first home and looks like I’ll be getting close to nada! Anybnody know if the basic tax right off when purchasing your first home is still valid or does this one cancel the other out?
Clark on February 17, 2009 2:22 pm

This new tax credit is NOT FAIR!!!! We that purchased homes in 2008 the begining of the recession (the worst of it in my opinion) have to REPAY this credit if we claim it!?!?!?!?! This is beyond ludacris! I have written my senators, reps, etc and I have been voicing how unfair this is for weeks. Now that it has been signed today, we (purchased our house on 09/25/08) have to REPAY the loan?!?!?! I need an explanation as to WHY!!! I do not want to hear no professional talking jibba jabba. I want it broken down to us! I am livid about this!!!!!!
Isaac on February 17, 2009 2:47 pm

Clark, for starters you probably won’t get very far by yelling at people calling their explanation “jibba jabba.”
It seems a lot of people are certain the time they bought was undoubtedly the worst of our “recession,” which seems oxy-moronic considering you bought a house then.
I don’t think you have too much to be irate about, you bought your house knowing it was a tax credit that was to be repayed, before this stimulus was circulated.
You’re mad because some guy down the street might not have to pay it back but YOU will… how would your neighbor having to pay it back put you in a better situation?

John, I’d say just shop wisely! Sure houses are more expensive in CA than a lot of places but it’s all in the negotiation. I am not going to say there is a clear cut income where “you need this tax credit.. and you don’t” but I would definitely venture to say there are many more opportunities without it for someone making $75k+ than those making $40-50
Erin on February 17, 2009 3:11 pm

Clark,
Can you post your letter, or the basics?
Myself and four other couples are irate as well. Just don’t want to leave anything out of our letters. We missed by a month. How were we supposed to know the gov’t would up the amount and go ahead and give it rather than loan it? BS! Unfair no matter what you people say. You have to put yourselves in our situation.
isaac on February 17, 2009 4:38 pm

i am in the same situation, i “missed” the non-payback by a day. i just choose not to complain like a child about it. most of you were happy about the 7500 credit before you knew about the stimulus, sooooo? nothing has cnahged with the original amount you were happy about, why waste energy complaining about something that DOESNT APPLY TO YOU and you have no control over? some people are just unhappy with life though
Gail McHugh on February 17, 2009 6:10 pm

Hi,
We purchased our home in 2009, filed our taxes, received the $7500 and commited to the “pay back terms”. But now since the new bill signed today says Jan 1 2009-Dec 31st 2009 does not have to be paid back does this apply to us?
Also, to take the $7500 in this years refund, our accountant told us that we had to list the purchase date as Dec 31st 2008 even though the actual closing date was Febuary 1st 2009.. Is that going to mess things up for us? I mean, if I were ever audited I can surely show my closing date to be Feb 1st 2009.. I am thinking we can ammend and not have to pay this back and receive an additional $500??
Lynn on February 17, 2009 6:59 pm

How about everybody that doesn’t want to repay the loan just say you closed after 1.1.09 whether you closed in January 08 or December 08? I’m sure you won’t be the first person to have lied on their taxes. How about not even take the credit? Now, that’s an idea…..nobody is forcing anyone to take the credit. I don’t want to repay it, so I choose not to take it. Ot I can just lie and say I closed in January 09 when I really closed in November 08. Would I rather take the change and get audited and get charged with tax fraud or just not take the credit? Hmmmmmm, let me think about that one.
HS on February 17, 2009 7:55 pm

Lynn…I truly hope you do not decide to lie on your taxes…as the IRS can easily determine your closing date. I had to provide this date for my CPA to send with my forms..and IRS asked for comfirmatin from my bank…so I wouldn’t go that route if I was you!
Kelley Blake on February 17, 2009 8:22 pm

I think this whole credit is absolutely insane!!! It is easy for all of you getting this credit to tell the ones that aren’t how childish they are being or not to worry about things that don’t concern you, because you are getting the money. Our money, we pay taxes just like you and now we are working so that you can go out and Spend, Spend, Spend! We have families to support too. This credit is absolutely unfair and now people allover are even lying to get it. I know a couple that aren’t married who bought a house together and each took the credit on the same house. So they can cheat the system and get $15,000 that they don’t have to pay back while the rest of us get nothing. Well good for you. Enjoy your money. Thank Goodness for Karma because it will come back around.
Aaron on February 17, 2009 8:57 pm

Sounds like there are alot of bitter people on here that are not getting the credit. You can definately tell Kelly is flipping, ranting about Karma and crap. What the heck does that have to do with someone getting a credit on thier taxes? Geez…

Others who are unemployed that were laid off are complaining that they didn’t get anything. I believe that they extended the unemployment benefits as well. and to the person who asked about the repayment of the 7500 credit vs the new credit you do not have to pay back. Two years until the repayment starts is a long time and I would bet my 7500 that it is changed.
Gail McHugh on February 17, 2009 9:16 pm

I am just happy to have gotten the credit.. If I have to repay it and someone else does not so be it, I still would have taken it either way..
brian on February 17, 2009 9:16 pm

I recently bought a house my closing date is march 20 2009. Will I be able to file for the new 8000 tax credit on my 08 tax return because we have not files yet. If so I am of the understanding that the irs has not updated software yet and tax people are not sure how to file for the new 8000 tax credit because all the system software still have the 7500 credit on it. any idea?
isaac on February 17, 2009 9:54 pm

lynn… RIGHT ON! no one is being forced to take the credit. I am not really with forging closing dates but other than that i’m with you.

and kelly, just as you hope “karma” will bite those who would lie to manipulate the system for a measly amount of money, it will likely bite you for such an attitude.
Steve on February 18, 2009 7:13 am

First off, I hope everyone realized Lynn was just being facetious in the post about tax fraud… the point is that it’s obviously a stupid thing to do, but some people seem to enjoy taking that giant risk.

Anyway, details on the FINAL stimulus credit are here…
- http://www.federalhousingtaxcredit.com/2009/glance.php
- http://niftyprediction.blogspot.com/2009/02/8000-home-buyer-tax-credit-explained.html
- http://www.zillowblog.com/8000-refundable-tax-credit-for-first-time-homebuyers/2009/02/
- http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm?postversion=2009021712
cb on February 18, 2009 9:08 am

This has obviously taken a turn for the ugly. The first time it was proposed to remove the repayment part of this credit was by Johnny Isakson, a WHITE senator, from GA.

If you don’t want to have to repay the credit, don’t take it. My wife and I closed on Dec. 1st and elected not to take the credit, because we didn’t want to be in debt to the IRS for the next 15 years.

Life’s not fair!
christine on February 18, 2009 9:10 am

Mike - I never post on blogs, but your comment was so offensive I could not resist. You clearly did not vote for our current president, but regardless he is our President and he deserves respect. You have a right to your opinion, but I’m sure most of us would prefer if you kept your toxic comment to yourself!
Carlos on February 18, 2009 9:17 am

Does anyone know if the new 2009 tax credit of $8000 apply for somebody who is recieving a federal tax refund of $5728 for 2008 taxes. I close on my new house in april of 2009 and would like to know if I can claim the full credit and amend my 2008 tax file.
Thank you.
Diane Tuman on February 18, 2009 9:20 am

All: Derogatory, offensive slurs and comments will not be tolerated on this site. I removed the offending comment and thank those that contacted me about it.
Steve on February 18, 2009 9:23 am

Carlos - If your refund is $5728 and file for the housing rebate along with your 2008 taxes, you should get a check for $13728.
chris on February 18, 2009 9:27 am

Carlos -

The credit will be split up over two years, if necessary, and is linked to your tax liability.

For example, if you were supposed to pay 5000 in taxes last year, but 8000 was witheld from your paychecks than you would receive a refund of 3000 plut 5000 of the credit can be applied to this year. So my understanding is you would receive a check for 8000 this year. You would then have 3000 of the credit that could be used next year.

Does that help you?
Carlos on February 18, 2009 9:33 am

Thank you chris and steve, I now understand.
Steve on February 18, 2009 9:42 am

Chris - Actually as far as I know, this credit (the final one signed into law by Obama yesterday) can NOT be split up over two years. That was the old proposal for the $15K cut. However, since this is a non-refundable credit, you can claim the full $8K no matter what your tax liability was.

So basically, as long as you owe zero tax (or have had whatever your liability is was withheld) you get the full $8K plus your regular refund.

If you owe any tax, then you get the full $8K minus whatever tax is owed - so if you owe the IRS $1K then you’ll get a check for $7K.
Lonnie on February 18, 2009 9:48 am

Does anyone know if the wording still reads the same about not being eligible for the credit if you purchase the home from a close relative (ex.-parent)?
chris on February 18, 2009 9:50 am

Thanks steve, that’s pretty good news.
Lonnie on February 18, 2009 10:00 am

Would a spouse be eligible if they purchased from an in-law?
Hope on February 18, 2009 10:03 am

We owned a mobile home last year (pretty much given to us 2 years ago) and built a new home in September of 08. Closed Sept. 16, 2008. Are we eligible for this???
shannon on February 18, 2009 10:04 am

We just closed on our house on 1/2/2009, but we already filed our taxes claiming the original $7,500 tax credit. Are we stuck paying that back even though we are eligible for the new $8,000 credit? Is this something we can amend on next years return?
chris on February 18, 2009 10:25 am

Amend this year’s return.
Cindy on February 18, 2009 10:45 am

In all honesty: does anyone think the reypayment option will be… changed in any way? That’d sure be cool. I mean reduced or eliminated or extended terms anything? You think it’ll happen?
Michelle on February 18, 2009 10:48 am

Looking for my last comment…
Michelle on February 18, 2009 10:50 am

I guess it vanished, so I will try again. I purchased my home in April of 08, and claimed the $7500.00 tax credit on my 2008 tax return. Since the purchase of my home, I have became engaged and will marry in 2010. Can I “sell” my home to my fiance this year, and allow him to claim the $8K credit on his 2009 return?
quint on February 18, 2009 11:14 am

Related party transactions are not eligible for the credit …. not to say if you weren’t married …
Lonnie on February 18, 2009 11:31 am

Michelle-
If you sold your home to your fiance-you would have to recapture the $7,500 credit you already claimed, and with the additional closing costs (for both of you), you may end up losing more than gaining, especially if the IRS waives the payback clause for the original $7,500 credit, which could happen when they revisit these issues next year (just like AMT tax issue).
Michelle on February 18, 2009 11:32 am

Yes, but we are not family and will not be until 2010. If they’d do the right thing, and not make us 2007 buyers repay the $7500, I’d never think of selling to my fiance. However - if the government chooses to act unfairly, I believe I will do the same.
debbie on February 18, 2009 12:54 pm

why would you try to claim it 2 times? That seems fraudulent..
john on February 18, 2009 1:26 pm

Yikes I smell Obama backlash..heard today’s plan, rewarding homeowners that shouldn’t have owned a home in the first place by helping them out and rewarding companies that allowed this to happen…but when a responsible homeowner buys an investment property he gets chucked to the curb. What is he thinking..REALLY wtf? I smell what the Barack is cooking and it smells like…socialism to me.
Lonnie on February 18, 2009 1:41 pm

not the “S” word!!! It’s true that some undeserving people will benefit too, but there are plenty of hard working people out there that are unemployed through no fault of their own, and helping them will ultimately help our capitalistic society by giving them purchasing power, which in turn will help keep companies afloat (and hopefully boost stock values!).
john on February 18, 2009 2:02 pm

That’s the ticket Goverment drives us into Debt and we SPEND SPEND SPEND. Good old USA soon we’ll be back on top of this vicious circle again and we can watch our kids reap the benefits!!!
Aaron on February 18, 2009 6:43 pm

Michelle, your scheme to cheat the system is disgusting and I really hope you try it so the IRS can return the favor with an extensive audit. People like you are the part of the problem we are facing now. Geez….if you want to get an extra 8000 I have a concept for you…try earning it.
Aaron on February 18, 2009 6:51 pm

Hey John, if you have the money to invest in property then wtf do you need the extra money for? So you think it is ok for the govt to help fund your business move? I got the credit, and I am not irresponsible. I did not own my first home until I was 28 and college educated with a nice salary.The socialism comment is stupid. I mean, you act like Obama created all the so called socialistic policies of this govt. Use your head you bitter man. I’ll think of you when I am buying something w/ my credit. If you belive all of these stimulus moves are “socialistic”, why don’t you return that nice little check the govt sent you last year. But, I bet in your eyes that is different because you were included in that.
Michelle on February 18, 2009 9:12 pm

Hey Aaron! For your information, I am a college-educated, full time employee, and mother! I worked my way through college, and have no problem working to support my family! I also have no problem taking the $7500 tax credit, and repaying it - however, I DO have a problem with the fact that people who purchase a home this year will get an additional $500 and NOT have to REPAY! What they do for one, they should do for all!
Jacob on February 19, 2009 9:26 am

Aaron, you sound like an idiot. Michelle does not have a disgusting scheme- but a logical plan. You would feel the exact same way if you got last year’s credit. But you are obviously for socialism just like any other uneducated idiot who voted for Obama because change sounds fun and spunky, right! These stupid credits are not helping in any way. They are simply disrupting balance among home owners. Once a republican gets back in we can start to repair the economy and try things that have always made sense. But wait that wouldn’t be cool unless he had black skin, otherwise we’d all be racist.
Terry on February 19, 2009 10:56 am

Jacob, spare me did you call it “Socialism” when taxpayers had to give an unprecedented bailout for banks? And was it “Socialism when America is known to give money to “the rich.” So your waiting for the day for a Republican to get back in office to fix things up. You had your chance and that is one of the reasons we are in this position now. What do you expect the gov’t to do? We were on this path to hell before you even knew about Obama.

The effects of socialism in America have been in heres for years and years.Any government-owned, -funded, or -subsidized operation is considered to be a socialist program. For example, publicly owned airports, sports arenas or government-funded universities would be considered socialist operations by that definition.

And why even mention race? This is what I don’t understand. It has nothing to do with anyone’s race, but yet people like you constantly stop at nothing to bring it up. Get over it already. This is real life, and real people are financially suffering. This money would do so much good for everyone, and if you missed out on the $$$ you are not the only one. The gov’t can’t please everyone. Have some pride for your country and pray that we can get out of this slump. After all Obama, didn’t get us here in the first place. They saw this crisis coming long before, we even knew about Obama. He is just doing his job.

I missed out on the $7500, by one day. I closed on my first home April 8th, I’m not bitter or upset, because that is life. I have more things to worry about than what someone else is getting. To everyone that is getting the extra money. Good for you, spend it wisely!!!!
me on February 19, 2009 11:40 am

I purchased a house and closed feb 1st 2008. Are there any tax credits of any kind that apply to me?
inger on February 19, 2009 12:51 pm

Jacob,
We’ve had a republican in the office for the last eight years wth are you talking about?? seriously?? He pissed away money worse than any dem ever. that’s just ignorant to think another rep would have “saved” us this time last election-who do you think got us here in the first place?? did ya check the deficit when bush left? where he took money from (i.e. social security, Medicare)? something’s got to start happening, people are panicking…
john on February 19, 2009 1:45 pm

Aaron your an idiot. Michelle I agree everyone should be treated equally I just don’t get why we’re helping the irresponsible people and the greedy banks..rewarding for bad behavior is what ticks me off. agreed something needed to be done if they had half a brain they would of funneled this $$ to the people by locking in 4% mortgages and giving the 15K support to the people. This would have caused an increase # of sales and what do u think the people would have done with the cash?? Home improvements, furniture and other things that would have put people to work. What happened when we gave the money to the banks..they went and invested offshore to make their bottom line look better so stock price goes up and the big cheeses are happy..BS BS BS. Bottom line funnel the $$ to people not to these damn corporations like the auto industry wanting more $$ for producing shitty cars..wtf is wrong with this picture.
April on February 19, 2009 3:19 pm

John I agree with you.I dont think they should be helping the car companies.I worked for a company that makes steering gears for Chrysler.And guess what I got laid off for good.They got the money in Dec. and where I worked we got over a month of lay off.Now come Feb. alot of us got the axe. My boyfriend and I work at the same place.He still there for now. But theres talk of another firing.I think the gov. should let the companys go out of business.They are not helping anyone.It is a total waste of money.THEY GIVE THEM MONEY, THEY FIRE PEOPLE.Dont see that as a good investment.

I was thrilled when I heard of the $7500 since my boyfriend, 2 kids, and I bought our house on July 23,2008. I dont mind paying it back.Wish I didnt but you cant get everything.I tell you what though I didnt use that money buying a bunch of stuff. I paid off bills so I was ready.
One last thing:Theres still no jobs out there.Who would of guessed.
john on February 19, 2009 3:38 pm

April fyi I’m pretty sure your DO NOT have to pay that back as long as your in the house for at least 36months.
April on February 19, 2009 3:51 pm

I got the cretit where you have to pay it back over 15 years.Have they changed it?
kathy on February 19, 2009 4:36 pm

I am very grateful there is help for home buyers but it is very unfair to make some pay the tax credit and not others. I also would question the legality of it as its the same bill under a different president just ammended. The date its changed to also is before President Obama was in office. Everyone is being urged to contact all there Senators and Congressional Representatives to resolve this. Hope all works out for everyone!!!
Ranee on February 19, 2009 8:07 pm

I bought my first home on July 15th 2008. I filed my taxes for 08 and got the credit back already. I did some research after I filed and found that the loan type of funding used was NIFA, which is a MRB (Mortgage Revenue Bond) type of tax-exempt loan, which would render me ineligible. I was not aware of this when I filed and I have the money. How do I go about returning it? Do I have to return it? Do I have to file a new tax return? WOuld they audit my records and consider ths to be tax fraud if I was not aware? help
Lonnie on February 20, 2009 5:49 am

Ranee…you can amend your return and pay it all back by the 15th of April, and you should not have any penalties. You have a good point that a lot of people don’t realize; the type of loan itself could make you ineligible for the credit.
Steve on February 20, 2009 9:38 am

Here’s a great PDF that sums up the differences in the new $8000 stimulus vs. last year’s $7500 version…

http://tinyurl.com/bba69t
De on February 20, 2009 10:53 am

The IRS has posted the updated first time homebuyers credit form 5405. link http://www.irs.gov/pub/irs-pdf/f5405.pdf

I talked to the IRS and they told me if you took the credit on your 2008 tax return for a home you purchased this year (2009) just file an amended return 1040X to claim the extra $500.

I hope this helps everyone.
joe monari on February 21, 2009 7:09 am

i am in the process of builting a new home. we took a construction loan out in oct. of 2008.. we will not finish with the house in may of 2009. i have not owned a home in the last 5 years.. do i quality for the 7,500 or 8,000 in tax credit….
frustrated tax payer on February 21, 2009 12:47 pm

Has anything changed yet in regards to the date of April 9th for first home buyers. I am a single mom who bought my house last Feb. Because I bought my house a little less than 2 months before this tax bill went into affect I can’t get the extra $7500???? I desperately need and would not even care about paying back this interest free “loan” since I always get money back anyways! I think if the bill was passed in 2008 it should be for ALL new home buyers for that year Jan-Dec 2008!
Angelica on February 21, 2009 3:23 pm

I am amazed at all the complaints about having to pay the money back if you purchased in 2008. My guess is that you weren’t complaining when the interest free loan was offered, but now you are complaining about paying it back. Boy, that line of thinking is what gets people in trouble in the first place. You agreed to the loan with the term of paying it back, get over it. Everyone is blaming government for everything instead of taking responsibility for their own actions. The government didn’t tell you to buy, nor did they force you to take a generous interest free loan either. Duh, why would the government let you off the hook, it wouldn’t make sense and it wouldn’t boost new home sales which is the whole point right? Good grief, be appreciative of what you did receive and how you pay it back in small sums with no interest. And for those of you who are considering fraud, is that necessary? The government didn’t rip you off, they gave you a loan that you agreed to. Now you want to beat them up for it? Get over it and enjoy your new home and the interest free loan.
Chelsea on February 22, 2009 8:06 am

I have a closing date of April 17 this year. I already filed my taxes to meet the April 15 deadline. Once I close on April 17, can I file the amendment to my 2008 taxes and receive the 8000 tax credit soon after I close or do I have to wait until my 2009 tax returns? Anyone have a website that outlines this in addition to their response?
Patrick on February 22, 2009 12:02 pm

I agree with Angelica’s comments; no one had a crystal ball at the time we were purchasing our homes. We did not know that the tax regulation was going to change but we accepted it as it was at the time and signed the contracts. Sure i’m upset that the 09 credit is non recapturable but there are not a lot of banks out there offering free lines on credit to anyone..take the government loan and pay off your high interest cc debt and be content.

@chelsea..you would have been better of filing an extension to Sept 15th and then filing for your taxes once you closed on the home. But you are correct, you can still file and amendment to you 2008 taxes.
Jeremy on February 23, 2009 9:15 am

I purchased my home with a PHFA loan, or in other words a mortgage revenue bond. I do not understand why you cannot claim the tax credit in 2008 if you purchased your home in this manner, but it is okay to do so if you purchased in 2009. Any feedback as to why this is? Are they going to change this?
conni on February 23, 2009 3:08 pm

So far this blog that I happened upon, has been more informative than anything else I’ve found!!! Someone mentioned that you don’t qualify if home was purchased from a close relative. I just purchased my aunt’s house (who holds the mortgage)..I paid full value market and was not even aware of this credit until Today! Am I disqualified? I hope not..especially since I just got laid off!!! thanks!
Lonnie on February 23, 2009 3:36 pm

From what I’ve read so far, purchasing from your Aunt would not disqualify you, lucky!!
frustrated tax payer on February 23, 2009 5:30 pm

Does anyone know if they have changed the date from April 9, 2008 to Jan 1, 2008?
Lynn on February 23, 2009 6:35 pm

I just went and filed my taxes today and the tax preparer informed me that there is “something in the works waiting to be reviewed about the 2008 $7500 credit and the possibility that the repayment will be pulled out”…..so I am assuming they are reviewing the possibility of not making those people who bought in 2008 repay their credit.

I don’t know how true that is, where she got her information from, or anything. I have not heard of this at this time, but maybe she knows things I don’t since she’s in the tax business.

She said to take the credit just in case they don’t require the repayment requirement.

Just thought I would share.
ranee on February 24, 2009 10:24 am

Jeremy- I am with you on this one. I just read the revised version of the stimulus from the PDF Steve posted. I cant help but to feel cheated not only because the people who bought a house between January 09 and July 09 got the best of both worlds. They were eligible for the first benefit but now will get to reap the rewards of no payback AND if they used a MRB loan they get to claim the credit. I know, I know. Beggers cant be choosers and I should be more than happy with what I have. But it is in fact human nature stemming all the way back to kindergarden when Kelly got the cherry sucker and I was stuck with the rootbeer. It’s not fair. I just hope these people spend the money wisely or this was all done in vain. I was going to build a deck and add some value to my new home. I just hope things get better out there. I work in a call center for a mortgage company and so many people are just bitter. These are the ones not on the verge of losing their home, but the ones who want a break like those people. Matter of fact, our hands are pretty tied when you are upside down in expenses vs income, but if you CAN afford your bills, the chances of modifiying your loan are greater. It’s backwards in many ways. It’s hard to hear whats really going on out there.
Kyle on February 24, 2009 10:40 am

Will the $7,500.00 first time home buyers credit have to be claimed next year as income?
Kristin on February 24, 2009 2:05 pm

We purchased our home on March 29th 2008 10 days before the April 9th date I heard that we can still get the $7500.00 does anyone know if this is true??
frustrated tax payer on February 24, 2009 6:05 pm

I would like to know if that is true or not bc I bought my house in Feb 08 and keep hearing that they are changing the date to Jan1 08 instead.
Julia on February 24, 2009 9:38 pm

HI im not to smart about these things but i would appreciate it if some one would answer my questions. My husband and i just signed the contract for our house and we already filed our taxed and received the money would we be able to reverese it in any way and add the 8000.00 credit and get that money this year. we really need the money and it would be a great help for the house. thanks
De on February 25, 2009 10:10 am

Julia, After you close on your house you have two choices. You may file an amended tax return. You will need the form 1040X and first time homebuyers credit form 5405. These forms are on the IRS web site. Or you may reduce the amount of federal tax taken out of your payroll checks.
Cindy Girl on February 25, 2009 11:10 am

Kristin, etc:

Unfortunately, it still appears that those who didn’t buy within the eligible periods cannot claim the credit. Sorry.
Lynn on February 25, 2009 4:39 pm

Kyle, the $7500 is not claimed as income, rather 1/15th of the credit you receive (because not everyone will get the full $7500) will be added to your tax return as an aditional tax the way I understand it. Since you’re paying it back, it’s not considered income.
Ron on February 27, 2009 6:41 pm

Does anyone understand why you wont qualify for this credit if you buy a home from a relative. My father is retiring and I’m considering buying his home as a first time buyer. I have to qualify for the loan ,pay interset and taxes like everyone else but I can’t get the same credit? This is amazeing how they allways have a hole in the plan.
R. Miller on March 2, 2009 10:50 am

We just bought a house mid dec. 08. I’m not too happy about the ‘09 house buyers not having the pay back.
RS on March 11, 2009 6:27 am

I received the $7500 home buyer credit. Does anyone know if we will need to withhold an additional $500 from our pay during 2010 to avoid risking a penalty for underpayment? I would hope that this will be viewed outside of the normal tax withholding.
Karen on March 12, 2009 4:00 pm

I have been reading everyone’s postings on here. I understand the frustration of having missed the first credit (a loan) by a couple days or the second credit by a couple days. I purchased my home on Dec 29, 2008 after being pushed into closing early by the seller, but I am moving on from that. The reason I am posting here is in hope of getting a question answered. I realize that as the law now stands, I can only claim the 7500 credit. I also know that if I sell my home in a couple years for a loss I do not have to pay back any amount I still owe. Because I think I may be moving in 2-3 years before the market has recovered, my question is: Are realtor fees taken into account when calculating gain from sale of your home? For example, let’s say I sell my home in 2 years for $234,000 and the realtors make about $12,000 commission and I bought my home for $222,000 ($227,000 with $5,000 closing help). In this scenario, I would break even, but would the IRS see it that way and take into account realtor fees?

Thanks for your help!
MJ on March 14, 2009 12:27 am

We bought a house last Aug. 2008. I already filed my tax return but did not apply for the tax credit. Can I still amend my tax return and get the tax credit this year?
jason on March 14, 2009 9:02 am

this is BS. i pay my bills and boujght a house 4 years ago. now tax money or should i say my money is being given away to people who dont deserve it. whats the reward for paying your bills on time. oh i know what it is you get to pay everyone else.
eric on March 16, 2009 1:26 pm

I have already filed my taxes for 2008. My scheduled closing for our first home is May 15th. Anyone know if I can file an amendment and get the 8k back this year?
James on March 20, 2009 8:42 pm

“jason on March 14, 2009 9:02 am

this is BS. i pay my bills and boujght a house 4 years ago. now tax money or should i say my money is being given away to people who dont deserve it. whats the reward for paying your bills on time. oh i know what it is you get to pay everyone else.”

Jason… I’m 25 and I pay my bills on time and I didn’t buy a house… but I will this year. Why don’t I deserve it? I Paid $11,000 in federal taxes last year and roughly $30,000 in the last 5 years. Sounds like sour grapes on your part because you bought when you did…
Kim on March 22, 2009 11:17 am

i just got married in 2008. i’m looking to buy a house. but my husband has owned a rental property for 10 years. does anyone know if i will quilify for the tax credit. Also i’m buying the home on my own he will not be on the loan.
Julia on March 24, 2009 12:39 pm

I purchased a house in Sept 2008 and could not believe when the first time homebuyer’s tax credit was changed from a loan that needs to be repaid to one that does not.

Please make your voice heard on the following petition site:

http://www.thepetitionsite.com/1/2008-First-Time-Home-Buyer-Rebate#signatures

Hopefully it will be amended and we can keep our money, too.
pat on April 5, 2009 5:46 am

I closed on a mortage in Mid December 2008, Do I qualify for the first time home buyers tax credit.
Michelle on April 7, 2009 4:43 pm

We bought closed on our house Feb. of 2008. We did not have a mortage payment until Apr. 17 2008. Are we still eligible for the 7500? Does it go by closing date or first payment date? Any news on it being changed to all of 2008?
Charles on April 9, 2009 10:02 am

Okay, so I closed on my first home in December 08. I was hoping to get in on the $7500 credit BUT when I found out that it must be repaid beginning in 2010 I decided to pass on it. (I didn’t need the money THAT bad.) So NOW I find out that if you bought after Jan 1st you get $8000 that you do NOT have to repay. That is complete BS! You mean to tell me, that if I would have closed a week later (in Jan) I could get $8K and NOT repay it? Good thing I decided NOT to take the 7500 and get stuck repaying that for the next 15 years! What a lame situation! Good job Obama, way to f^ck everybody who bought early.
Sean on April 10, 2009 7:41 am

It really is B.S. Is there any way we can get more people to see the link to the petition? Will the petition even help? Any one who has signed the petition tell your friends to sign it!
charles c n on April 14, 2009 9:43 am

What is the lead time to recieve your tax credit check if you filed for an amendmend?
Naresh on April 14, 2009 10:05 am

(I posted this a few minutes back also but did not show up)

I purchased my home on April 1 2008, which means that I missed out hte 7500 credit by one week -:(

It is good that the credit is being given out…but the sad part….is that folks who buy homes this year
will already be getting the house at a very good price.
It is the folks who bought 1st half of last year and around that time…that have paid a high price….

Eg. I bought a place for around 600k, today the same place is being sold for 500k…

The person who buys today gets another 8k…so effectively 492k will be the cost…-:(

The ones who paid around 600k (there are definately millions of folks like me.) are under water and
are not getting any help…making home affordable will not help enough….as it is only 105% LTV

What good is 105% LTV in bay area where prices are gone down by 20 to 30% ?
mary on June 5, 2009 12:58 pm

Per Charles post on April 9, 2009.

Yes Obama did f^^k us over….not just that the new 8k tax credit states that you can buy a house and get a credit, but you don’t qualify if buy a house that is related to you…what is the difference. My parents want to move and sell their house, but my brother has offered to buy it and live there. That is not fair!!!!!! So beware of all the terms before claiming it. Because they say you don’t have to pay it back, but you can’t sell your house within a three year time frame.
Stacia on June 22, 2009 4:36 pm

I am buying a house this year I just purchased one yesterday and i will be closing on it at the end of July 2009.I called my lender about the chfa jumpstart program to use this loan for my closing cost. He said that he would need my husband income to see if I qualify and that it was going to be 6.25% on this loan. I was wondering if I will beable to to a 2008 ammend for my tax credit to repay back the jumstart mortage or do I have to wait till I file in 2009 and I do not understand why he said that if I use the chfa program taht my monthly program will be 125 dollars more then if I use my own money andso if I pay off the chfa jumpstart program then shouldnt my intrest rate go down,
Reggie on July 4, 2009 3:14 pm

What if my husband and I purchased our home on Dec. 31st, 2008.
Took the first time home buyers interest free tax credit and now I no longer live in the home?
Linda on July 16, 2009 7:34 pm

Here is my story…I purchased a house in 2009, qualified for the $8000 tax credit. Sent my 2008 tax amendment in March and yet after almost 4 months I have NOT received the money….I called IRS and I was told they are very busy and it will be assigned to a “case manager”, but don’t know how soon! Did anyone actually got the money from IRS?
dona allen on July 18, 2009 5:55 pm

question….my husband just bought this home last year in 2008. he never owned a home before. it is in his name only. I owed a home before we were married and it was in my name only. i never sold it i lost it in a bk. so would he qualify?
brad on August 4, 2009 8:43 am

i closed on my home dec 14,2008. i received the $7,500 tax credit. is there anyway to petition the irs or amend my 2008 taxes so i don’t have to pay it back?I could have waited until after the first of the year if i knew i didnt have to pay the credit back.i don”t think it is fair i get my kids into a home and out of an over priced apartment before x-max and thats why i have to pay the irs back.should have to count against someone.it should be retroactive i think.
Dawn on August 14, 2009 4:52 pm

I closed on my home at the end of April and submitted my amended return in June. IRS received it on the 9th (I always send by certified mail) I called the IRS two weeks ago to check the status. All they can say is that it was received and is in processing. I know of 2 people who closed end of June and have gotten theirs already. Coming on week 10 and haven’t since anything. This will be the first time anything like this has came our way, as we make too much to get most tax credits, and too little to take advantage of others. I already got my return this year, what it the world is taking them so long to look at 3 pages
Troy on October 11, 2009 3:57 pm

i need to know the name of a site that will tell me all of the details on this 8000 dollar tax credit
Cheryl on October 20, 2009 7:20 pm

Someone please tell me it’s true…my 25 yr old daughter and I purchased our first home in Oct 2008 and took the credit, then 3 months later it’s $8,000 and doesn’t have to be paid back. I am a United States Air Force Veteran and had I known it was going to change, we would have waited to buy, now at 25 yrs old, she will have more debt…thanks for any information you can provide.
JM on October 27, 2009 2:35 pm

Filed my amended tax return first week of June. Have yet to receive anything. I’ve been told that a tax examiner would call me to update me on status and still nothing. I was told via correspondence that I would receive notice from IRS by October and still nothing. IRS agent told me today they were surprised I hadn’t heard anything yet. All they did was send an email to examiner asking them to call me again. I’m on week 20 and this is just frustrating.
DAVID on November 3, 2009 9:54 am

I BOUGHT A HOME ON MARCH 7TH 2008. WONDERING IF I CAN STILL GET ANYTHING BACK LIKE THE 7500 OR SOMETHING. AND WHO I SHOULD SPEAK TO BOUT IT? THANKS
kathy on November 5, 2009 6:07 pm

the 7500 tax credit has to be repaid when the others dont even though its an extension of the bill. seem reall unfair and illegal. January 1st. buyers don’t repay even though President Obama wasnt even sworn into office yet. Are we the ones who are giving our payback to the new buyers in 2009? WHAT A MESS!!! please write your congress, someone might listen!!!
emily on November 5, 2009 7:06 pm

My husband and I purchased our home on April 15, 2008 - barely making the beginning of the first $7,500 “credit”. Of course we were slightly peeved that by the end of the year, people were getting a true credit of $8000.

Today I was reading about the new homebuyer credit “extension & expansion” legislation that is about to go through that will be extending the $8000 credit dates and offering new $6500 credits to others. Does anyone know if this new legislation will affect those of us with the original $7500 interest-free loan? Any chance it would forgive that “debt”??
Susan on November 5, 2009 7:48 pm

Amazing! You are getting something (either an interest free loan or an outright gift) that those of us who owned our homes before the fiasco have not gotten which is being paid for by the rest of us and some of you want to commit fraud, some of you whine about it and almost all of you want more of. What did you do to deserve it that justifies your claims that any of it is not fair?
What is really not fair is that I didn’t get any of it and I am paying for it. So if you got something for nothing just be grateful and quit complaining.
MICHAEL on November 9, 2009 7:44 pm

hello can anyone tell me how long it takes to get the 7500 from the irs once they have written you a letter saying its under review ?
MICHAEL on November 9, 2009 7:51 pm

i filed and amended my 2008 tax return back in april -2009 in order to claim the 7500 first time home buyers tax credit i have had to send them proof of where i closed on my house nov-2008 they have sense then sent me a letter saying its under review how long will it be now before i recieve the refund ? is there anything further i need to do?
tammy on November 11, 2009 1:31 pm

I bought my home from a women who posted a add on craigs list.FSBO and i got it.she went on line and got legal papers drawn up and she filled them out and we sighned and got noterized,but was not recorded.She did this to save me the closing costs.I went to H and R Blook and they charged me $109.00 to do the ammended form and said it would take 3-6 months to get my refund.I heard if the home didnt go threw closing i coulnt get the refund.Does any one know if thats true,and dont you think H and R Blook should have known that?Also i called and they said at the IRS that my papers have been there seince Oct.8th,2009 and were being revued.What does that mean?Will i get it or not,and if not should i get a refund from H and R?Thanks,Tammy
Tax Problems CPA on November 19, 2009 4:52 pm

Tammy,

A closing is not necessary. As long as you are responsible for the benefits and the obligations of owning the property in addition to being a first time home buyer then you will qualify for the credit.
Rosey on November 21, 2009 8:50 am

I bought my house in May of 2008, filed my rebate and still have not heard anything from them. Is there something else I need to do?
Jimmy T on December 1, 2009 11:12 am

Your accountant can help you get through this. That’s what they get paid for.
Paul on December 8, 2009 1:47 pm

I purchased in Sept of 2008. I am a single dad and get no support from ex. Kids and I have not found one program to help us. I make a single middle class income. We took the credit to pay for washer dryer etc. I see millions going to someone or some bank or some car company, but my family has not seen anything. Now my student loans have skyrocketed, my credit card companies are hitting me with more fees, my health insurance has gone up, and secretly groceries have tripled but no one says anything. This credit not being extended to those of us that first took part in the program is a disgrace and I regret having to have had to use it. The new credit is open to all home buyers. The only ones who can not benefit from this program are those who were the first to trust it. And here is the only place i can vent… maybe 1 person will read this.
Paul powerlinep on facebook.
Rusty on December 8, 2009 4:01 pm

Why doesn’t everybody stop looking to the government to hand out other people’s money to them? Gee folks, how about rolling up your sleeves and working for what you have - and if you lose your home, you still live in a very rich, high-standard-of-living country, and you can start over again. That is what makes this country great - not handing over other peoples tax money to you to try and prop up an industry that has overspent and overborrowed.
Greg on January 6, 2010 6:32 pm

I’m a 45 year old divorced father of four. In January of 2006 I quit claimed all interest in the home my ex wife and I owned and lived in. Three and one half years later, I was debating whether to renew my annual lease on an affordable apartment in a convenient location. My landlord, a realtor, told me I’d be crazy NOT to take advantage of the new first time home buyer credit being offered.

I looked into it. I clearly qualified as a first time home buyer. I knew of a nice little house for sale in a neighborhood I liked. I didn’t have much money for a down payment though. I heard of a local bank offering to lend downpayment money to borrowers qualifying for the first time home buyer credit. Everything was lining up! I got pre-qualified, made an offer, got it accepted, and scheduled a closing.

In June of 2009 I became a home owner. I paid $65,000 for the house. I borrowed the 10% downpayment in a balloon loan- to be paid when the tax credit came in 6 to 8 weeks. This may seem like the kind of borrowing that got the country into trouble, but the house appraised well above the purchase price, and with the $6500 credit, I’d be in a great equity position in no time!

Two months later I’d heard nothing from the IRS. I went online to check the status. It showed nothing. I called a toll-free number and was put on hold for twenty minutes! You never get those minutes of your life back!

Three months later I called again. I learned that the IRS was overwhelmed by applications for this first time home buyer credit. The Economic Stimulus was doing some stimulating. Things were backed up. The balloon loan came due. I extended it for another six weeks, (at 13%)

Four months later I got a letter from the IRS. My credit was denied. Their records showed that I’d owned a home within the three year period preceding the purchase of the qualifying home. Their records were wrong, but that didn’t matter much. the letter was final. My only option, it stated, was to appeal in federal tax court!

What???? Once I settled down, I began researching. I found phone numbers that got me directly to IRS agents. (See the page: IRS contacts) I made calls and surprised a few bureaucrats. I also filled out a form to procure an IRS tax advocate. If you are having trouble getting your credit, click here to FILL OUT THIS FORM: !!

I got them to reopen my case. I called my advocate every week. I felt like, maybe she was helping- maybe she was pacifying be to get me off the phone.

Six months later, I closed out the year with a report from the IRS. The advocate had told me nothing of the report landing in my mail box- the report informing me that A. My First Time Home Buyer Credit was denied. B. A review of my 2008 tax filing revealed an underpayment of $1600.00!

Wow! Both items were in error. Try telling the IRS that!

I’ve since refinanced the balloon loan into a second mortgage. Now I’m paying two loans and property taxes, and utilities, AND maintenance! Thanks Obama. You dangled a carrot. I jumped from my affordable apartment. The carrot got yanked away and here I am. The irony of a first time home buyer home going into foreclosure is rich and tragic.

Have I quit fighting? No Way!

1. I contacted my U.S. Congressional representative. I encourage anyone having trouble of this sort to do the same. After signing a release of information, the office of my congressman will be advocating for me. A file stamped: CONGRESSIONAL INTEREST might just float to the top of the pile.

2. I submitted paper copies of all documentation directly to the agent who signed the report, along with a letter summarizing my situation and itemizing the documents included.

3. I submitted paper copies of all documentation directly to the taxpayer advocate assigned to my case.

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Details on First-Time Home Buyer Tax Credit

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