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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