Does the first time home buyer tax credit provide a refund if you dont use all of it? And if not does it carry?
Jack S asked:
Does the first time home buyer tax credit provide a refund if you dont use all of it? And if not does it carry forward into the next year if you dont use all of it?
Kristen
Does the first time home buyer tax credit provide a refund if you dont use all of it? And if not does it carry forward into the next year if you dont use all of it?
Kristen
August 12th, 2009 at 5:56 am
Stephanie
If you qualify it will reduce your taxes by $7500 or if you owe 0 federal taxes, then you will get $7500 to use for whatever you want. The catch is you have to pay it back over 15 years though…
There’s always a catch… good luck!
August 14th, 2009 at 12:34 am
Mitchell
August 14th, 2009 at 7:15 am
Steve
Not sure what you mean by “if you don’t use all of it”. It’s a refundable credit, so if for example your tax liability was $3000 and your credit was $7500, you’d get a check for the other $4500. If you don’t use all of it because the house you buy doesn’t qualify for the full $7500 credit, then no it doesn’t carry over, since a house you’d buy the next year wouldn’t be a first time home buy.
August 15th, 2009 at 8:48 am
Leonard
The credit is refundable. That means you get the amount you’re entitled to even if reduces your tax below zero.
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