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Tax credit for fist time homeowners?

When I was in the process of buying my house I found out about a federal tax credit for first time homeowners. The credit is actually a $7,500 interest free loan that is repaid $500 dollars a year, with the remainder due when the house is sold. This is a pretty good deal, considering it means not financing furniture or having to wait to do repairs that really should be done sooner rather than later. When I found out about the tax credit, the information that I found, as well as the information I was given by my mortgage broker specified that all I needed to do to receive the credit was file my taxes. My father just called to inform me today that he heard I was supposed to notify my local government and fill out paperwork with them prior to the purchase of the house in order to receive the money. I can't find anything regarding this online and the tax credit has now changed for 2009, so the information on the site is no longer valid to my question. Does anyone know what I am/was supposed to do in order to file for this loan? Thank you.

3 Answers

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  • 1 decade ago
    Favorite Answer

    You just have to specify you would like the tax credit when you do your taxes. There is no paperwork to fill out before you buy the house, to my knowledge. My buyer's agent would have let me know if that's the case.

    Source(s): I'm eligible for the credit too so I've looked into it.
  • Anonymous
    1 decade ago

    I'm sure your Father means well, but he has been misinformed. All you need to do is claim the credit on your taxes. If you use tax software, it will do all the forms for you. The local government has nothing to do with it.

    Also, its true that congress is trying to pass another credit for 2009 home purchases, but it has no impact on the current credit of $7500 for 2008.

  • 1 decade ago

    There is no paperwork before. If you are doing your taxing yourself with software, you should be prompted about the credit. More info is available at the following link: http://www.irs.gov/newsroom/article/0,,id=186831,0...

    Source(s): www.talkingchick.com
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