2008 1st time homebuyer tax credit

**Russ** · 02-15-2011, 09:10 AM

If you got the tax credit in 2008 (not 2009 or 2010) it looks like you start paying it back this year.

For some, it's time to repay home tax credit - Business - Tax Tactics - msnbc.com

**Telephus44** · 02-15-2011, 09:53 AM

Yes, already have this in my tax paperwork for this year. What I found odd was, the IRS sent DH a letter in December, reminding him that he took $3750 for the tax credit and had to start paying it back this year. Hello, we took a $7500 credit - and yes, we will start paying it back this year...

**leighcat** · 02-15-2011, 03:27 PM

That is why I am so glad I borrowed in 2009. I hope they don't try to make me pay it back next year. When I asked about it before, they said only if I move out of the house within 3 years.

**leighcat** · 02-15-2011, 03:29 PM

I just skimmed the article after my reply. Well I have been in the house almost a year so hopefully I can manage to make it at least 2 more lol! I plan on staying a lot longer than that anyway!! Then I won't have to pay it back at all.

**Ponderer** · 02-16-2011, 10:05 AM

I purchased my house in April of 2009 and the $8000 is definitely not a pay back situation for me. I am one of the few where it worked as intended. I had been flirting with buying for several years and this is what made me jump in and actually go for it. As soon as I heard the 08 $7500 pay back plan turned into $8000 no pay back....I was out looking and found my house in April and moved in in May. I have never regretted it.

**Telephus44** · 02-16-2011, 01:33 PM

Oddly enough, I just finished with my taxes - did you know you can actually pay it back ahead of time if you want? I am paying back $500 out of the $7500 this year, but they gave me the option to pay any amount I wanted to, just had to be a minimum of $500.

This credit wasn't a big factor in our decision to buy a home - but we also used it wisely. We bought in Sept 2008, and after we got our $7500 back in March 09, we turned around a refinanced from 6.5% down to 5% - I figure we'll save about $60,000 over the life of the loan, worth taking an interest free loan from the government for! The $7500 more than covered the closing costs for the refi.

**brenda67** · 02-17-2011, 11:30 AM

Originally Posted by Telephus44

Yes, already have this in my tax paperwork for this year. What I found odd was, the IRS sent DH a letter in December, reminding him that he took $3750 for the tax credit and had to start paying it back this year. Hello, we took a $7500 credit - and yes, we will start paying it back this year...

Dh & I got the same letter twice... I found that to be odd also about the $3750 instead of the $7500..I feel they should of let us have it free and clear like the other's did..anyway it also stated that we have to them $250 instead of the $500 that I thought I remembered seeing as the to be paid back for xx amount of years...I'm not complaining about it..