Home Buying in 95212>Question Details

Christina, Home Seller in Sacramento, CA

I have a question on the $8k tax credit. Will I get it $8k when I file my taxes? I heard I have to pay it back..is this true?

Asked by Christina, Sacramento, CA Tue Jun 8, 2010

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Hi Christina,

There's a great side-by-side chart located at http://docs.Steven-Anthony.com/033010ComboTaxCreditChart.pdf that breaks down all the details of both the FED & CA Tax credits.

For example, the FED requires you maintain the property as your primary residence for three years. The State requires 2 years. With the FED tax credit you claim it all in your 2010 taxes. The State tax credit is claimed over the 2010-2012 tax years.

There are many other comparisons on the chart.

Best, Steve
0 votes Thank Flag Link Tue Jun 8, 2010
You get the $8,000 (as a credit against taxes owed--or back if you don't owe taxes) as part of the normal refund process.

Regarding paying it back, from the IRS Web site:
A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. See Form 5405 and its instructions about repayment of the credit. (5/6/09, 1/27/10)
For more information, see http://www.irs.gov/newsroom/article/0,,id=206291,00.html
0 votes Thank Flag Link Tue Jun 8, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
Speak to your tax consultant--you can file an amended return this year in order to receive the rebate sooner rather than later. You will need to pay the credit back only if it's not your primary residence for 36 months from the date of purchase. See IRS link for additional information--under claiming your credit and repaying your credit.
0 votes Thank Flag Link Tue Jun 8, 2010
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