09 Apr Help for Repaying Homebuyer Tax Credit
There’s no way to eliminate the payback amount for those who used the Homebuyer Tax Credit starting in 2008, but the IRS has taken steps to make the process less painful. While the chance to pay it back over time through tax returns has come and gone, borrowers can now use an online tool to view pertinent information about their no-interest loan. The idea is to give taxpayers more visibility to their obligation as it relates to the Homebuyer Tax Credit.
At the IRS website, taxpayers can create a profile by entering their social security number, birthday and some other identifying information. From there, they will be able to see their balance, amount paid back to date, total tax credit received, annual installment amount, and also includes their exact payback amount.
While the first-time homebuyer tax credit was an honorable move by lawmakers to counter the effects of the housing market, unfortunately, it was done away with in 2009. Borrowers, including those who used the tax credit in 2009 and 2010 and sold their home within three years of purchase, are required to repay their benefit.
The IRS’ new tool aims to streamline the process and keep information more organized. For more information, please visit the IRS website.