First Time Homebuyer Credit Repayment

If claimed the First-Time Homebuyer Credit, you may have to make an annual repayment installment. This is located on your 2011 tax return. You can use the IRS.gov website to check your repayment obligation. You will need your social security number, date of birth, and complete address.

As a reminder, the repayment is for people who purchased a home in 2008 and have a 15-year FTHBC repayment requirement or an accelerated repayment.

Taxpayers who purchased a home in 2008:

This credit is similar to a loan (with no interest) that must be paid within 15 annual installments. (Beginning in the 2010 income tax year)

The IRS provides an easy example: If you bought a home in 2008 and claimed the maximum credit of $7,500, the repayment amount is $500 per year.

In the case that you cease to use the home as your main home, you must repay the entire remaining amount of the credit.

Taxpayers who purchased their home in 2009 or 2010:

You may need to repay the entire amount if your home is no longer your main home. However, you do not need to repay it if it remains your main home for three years after the purchase. You must also complete a new Form 5405 the year it ceases to be your main home.

This entry was posted on Friday, November 20th, 2020 at 4:36 pm and is filed under Credits. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.