Do I get the first time home buyer tax credit this year or next year?

You can claim the $7,500 credit that has to be repaid now, as long as you close the purchase before you file your tax return. Or you can probably claim the $8,000 credit that does NOT have to be repaid NEXT year when you file. It is not known at present if you will be able to claim the $7,500 one now and 'convert' to the $8,000 one next year.

If you bought your home in 2009, then you have the option to take the credit on your 2008 tax return or 2009 tax return. The new stimulus package increases the credit to $8000 for home bought in 2009, so I would wait til the President signs the new bill into law and file your tax return to get the new $8000 credit, which does not have to be repaid.

The pastime is taxable. you will acquire a 1099-INT substitute letter from the IRS early next 300 and sixty 5 days to remind you. whether you do no longer, make an commentary of it because of the fact the IRS won't overlook it and could be finding for it on your return next 300 and sixty 5 days. The $8k is particularly tax unfastened funds to you. rejoice with it properly. in case you mailed it out on a million/15 and have been given it right this moment, it is in all threat the quickest one which the IRS has ever processed. fortunate you!

If you buy a home in 2009, the tax credit would be included/calculated into your 2009 tax return which will be filed in 2010.

Next time around.

And make sure you meet all qualifications. There is a $7500 refundable credit, really a non-interest bearing loan in effect right now. And it comes through filing your return.

I think that you will have to wait till 2010 b/c the bill just went to effect today and you brought the house in 09 instead of 08.