Tax Credit 2008 Payback

Remember in 2008 when the government passed theHousing and Economic Recovery Act of 2008refundable tax credit for individuals who were qualified first-time homebuyers of a principal residence in the United States? Well, if you purchased a house between April 8, 2008, and December 31, 2008 and you took advantage of the tax credit, then it's time to start paying back the loan.
The tax credit in 2008 was actually more of a 15 year interest free loan with a 2 year grace period and now that the grace period is up, it's time to start paying the tax credit back. Whatever tax credit amount you qualified for back in 2008, divide that amount by 15, and that is the amount you will be required to start paying back. So if you took advantage of the full $7,500 tax credit, you will have to repay $500 per year for the next 15 years.
H&R Block estimates that almost 1 million Americans took advantage of this tax credit in 2008.
Now, if you bought your house in 2008 and have already re-sold it, then you will owe even more, because you will be required to repay the entire amount of the interest free loan, or the tax credit, back all at once.
If you took advantage of the tax credit in 2009 or 2010, you do not have to pay anything back.

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