KT-3999, Home Buyer in Fremont, CA

Is California first time home buyer credit reported in 1099-G taxable?

Asked by KT-3999, Fremont, CA Tue Mar 22, 2011


We bought our house in April 2009. I applied for the CA New Home Tax Credit of $10K and was given a certificate. When I was doing my tax return for tax year 2009, without the 10k credit, I was getting CA refund of $100 but after the 10k credit was applied, I received $3433 ($3333 $100) CA refund. In January 2011, I receive 1099-G for the same refund amount $3433.

My question: Do I have to report full $3433 from 1099-G form in my federal tax return for 2010 tax year or just report $100. My refund was due to mostly CREDIT from CA first time home buyer credit. FTB reports the credit as refund? I did my 2010 tax with and withOUT form 1099-G and I see a different of $1000. I get more refund when I don't use form 1099-G. So if I have to use form 1099-G doesn't it mean that out of $3333 credit that I received in 2010, the credit is partly taken away by federal tax return requiring that I report my tax refund/credit from CA govt.

And yes I did itemize my federal tax return in 2010.

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Inrohit28, Home Buyer,
Wed Feb 1, 2012
I am looking for answer to same question. Did you find out if home credit is taxable by federal next year?
0 votes
Lquitter2011, Home Owner, San Diego, CA
Wed Jan 18, 2012
Hi KT-3999, did you figure out the answer?
0 votes
John Juarez, Agent, Fremont, CA
Thu Mar 24, 2011
Great question, KT-3999, and one that you should ask a tax professional.
0 votes
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