Okay, you have been estranged from your spouse for several years. You’d like to buy your first house and of course you want the $8,000 first time home buyer tax credit. You file your taxes as a single person–in fact, you file as a Head of Household because you are for all practical purposes a single parent. How does the credit work for you?
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Loading ...Many taxpayers - regardless of credit history - jumped last year to take advantage of a $7,500 tax credit for first time home buyers. The advantage of this credit was that it was refundable–even if you didn’t owe $7,500 in taxes you got the whole credit. For example if you owed $2,500, your credit covered that debt and the government cut you a check for $5,000. The downside was that over a 15 year period, the credit had to be repaid.
Then, Congress passed the American Recovery and Reinvestment Act of 2009. This new bill increases the credit to $8,000 and that $8,000 doesn’t have to be repaid. How does this new bill affect those who took the $7,500 credit? Continue reading ‘They Passed the Stimulus Bill: Do I Have to Pay Back My $7,500 Tax Credit?!?’
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Gina Pogol writes for an online media company about mortgage and finance. In addition to a decade in mortgage lending, she formerly consulted for Experian and other credit bureaus, and worked as a tax accountant for Deloitte. She has a BS in Financial Management from the University of Nevada.
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