The timer has come, for those who bought a home in 2008 and claimed the First Time Homebuyer credit on their taxes. The IRS is interested in helping you do that and they’re offering some very helpful tools to do so. They won’t be mailing reminder letter anymore, but there is a way to check the status & amounts on their website.
You may recall that these were credits similar to a no-interest loan, which must be paid pack starting with your tax return last year. The installments should be set up in 15 equal payments, unless the property was sold or you stopped using it as your primary residence (then the entire amount may be due).
Too access the tool, go to www.IRS.gov enter your social security number, date of birth and complete mailing address. You’ll be able to find out; the original amount of the credit, the annual repayment amounts, total amount paid and the balance.
Remember to report your payments on your 1040 Form, line 59b. If you are repaying because you sold the home or it stopped being your primary residence you will need to file Form 5405.
For more information about your neighborhood, please visit us at: www.OrangeCountyRealEstates.com
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