home buyers tax credit refund - taxes affected next year?

Question

I must say I am very pleased and surprised.  I sent my ammended 2008 tax return in on January 15 to reflect my home purchase and the 8000 tax credit.  After all of the horror stories I have heard, I can't believe that today I received my refund check already (after 3 weeks of mailing).  I am planning for next years taxes and am wondering what tax, if any, I will have to pay on this next year.  The whole amount 8236.62, the interest amount 236.32, or neither.  If anyone is wondering, I sent in standard forms, a copy of my HUD settlement papers, and one other paper of the survayor report showing matching buyer and seller names.  Nothing more.  Thanks

Bostonian In MO · Answer

The interest is taxable.  You'll receive a 1099-INT substitute letter from the IRS early next year to remind you.  Even if you don't, make a note of it as the IRS won't forget it and will be looking for it on your return next year.

The $8k is totally tax free money to you.  Enjoy it wisely.

If you mailed it out on 1/15 and got it today, that's probably the fastest one that the IRS has ever processed.  Lucky you!

Anonymous · Answer

in case you obtain your abode in 2009, then you incredibly've the choice to take the credit on your 2008 tax return or 2009 tax return. the recent stimulus equipment will develop the credit to $8000 for abode offered in 2009, so i could wait til the President signs and indicators the recent bill into regulation and report your tax return to get the recent $8000 credit, which does not could desire to be repaid.

Judy · Answer

Congrats - that's the fastest I've heard by far for anyone getting the credit.

The interest amount will be taxable interest when you file next year.  The $8000 will not be taxable.

Trending News

home buyers tax credit refund - taxes affected next year?

3 Answers