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Ronnie, Home Buyer in Philadelphia, PA

First-Time Homebuyer Credit Aftermath

Asked by Ronnie, Philadelphia, PA Thu Apr 9, 2009

I took advantage of the $7500 First-Time Homebuyer Credit, but now I'm curious as to what will happen if I don't get a tax refund at all for the next tax year (2010). Will they find some other way to make sure I pay that money each year? Or what if my refund is not large enough to take the $500 out each year.

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Thanks for the responses. I am currently filing as single with -0- dependents, so that will hopefully help.
0 votes Thank Flag Link Thu Apr 9, 2009
Yes, get with a tax expert. The tax code is over 8000 pages and I can't fully understand 10 of those.

That being said, in order from owing the IRS anything you would need to increase what is being withheld now. For instance, if you withhold as married filing jointly with "x" amount of dependents, just withhold at a single rate or with 0 dependents. This will increase the amount being given from paycheck to paycheck and won't hurt at tax filing.

Hope that helps,

Terrence Charest, e-Pro
0 votes Thank Flag Link Thu Apr 9, 2009
Ronnie,
It is my understanding that if your tax refund will not cover it, you will owe the balance as taxes owed. I am not positive on this, it's just my understanding of that credit. I would check with your tax professional to make sure. They are always changing things.
Good luck to you!
Michael

Michael D Delp
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0 votes Thank Flag Link Thu Apr 9, 2009
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