The first-time home buyer credit provided tax help to anyone who was eligible. The bad news is, it may have to be repaid. Depending on the circumstances, it could even be a lump sum amount due at the tax deadline.
Back in 2008, the government had a plan to nudge would be first-time home buyers into taking the plunge into the housing market. It was a good first idea. Then in 2009, the government extended and changed the rules. Much to the dismay of the 2008 home buyers, but it worked a little better through 2010 when it ended for all but some military members (ending for them in 2011).
Recently, the IRS changed it’s notification process for everyone that took advantage of the first-time home buyer credit. In the past everyone would have gotten a reminder letter in the mail before they had to file a tax return. A good idea, since some people may have to repay the credit. But the IRS no longer sends reminders in the mail. Now it’s the participants responsibility to look up their account information online. Continue Reading…