Tracy’s Tax Tips #9: New Homebuyer Tax Credit

Some help for new homeowners…

I’m Tracy Byrnes with the FOX Business Network, here with another of Tracy’s Tax Tips:

Well, if you bought a home in 2008 and claimed the First-Time Homebuyer Credit, remember, you didn’t get a freebie.  That credit was similar to a no-interest loan and has to be repaid in 15 equal annual installments starting with your 2010 return.

Can’t remember if you owe?  Or how much?  Well, the IRS now has a tool to help people who have to repay their First-Time Homebuyer Credit.  Reminder letters used to go out, but no more.  Now they want you to use the online look-up tool at irs.gov to check your repayment obligation.

And here’s a big note: if you sold your home, or stopped using it as your main home, you may have to repay the entire credit, whether if that home was purchased in 2008, 2009 or 2010.  The First-Time Homebuyer Credit Tool will help you figure all that out.  And remember to report any amount owed on your federal tax return, and realize that extra amount could bump up your tax bill.

I’m Tracy Byrnes, FOX News Radio.