Deductions & credits

There are several versions of the Homebuyer credit depending upon when the home was purchased:

• For homes purchased in 2008, the credit, with some exceptions, must be repaid and takes the form of a $7,500 interest-free loan.
• For homes purchased in 2009 prior to November 7, the credit is for a maximum of $8,000 and, with some exceptions, does not have to be repaid, but it's only for new home owners who have not owned a home in the prior three years.
• Beginning November 7, 2009, an additional category of new homebuyers, long-time residents (who owned their own homes), was added. The credit for this group is a maximum of $6,500, which, with some exceptions, does not have to be repaid. (1/27/10) 
  

If you took advantage of the 2008 First-Time Homebuyer Credit (which was actually an interest-free loan), you'll repay it in equal portions for 15 years, starting with your 2010 tax return.

Your repayment is an additional tax that will either lower your refund or increase your tax bill through tax year 2025. If you got the full $7500 credit, the additional tax is $500 per year; otherwise, if you got less than that, your repayment is 6.66% of the total loan amount.

1. Click on Federal Taxes > Deductions & Credits  [In TT Home & Biz:  Personal > Deductions & Credits > I'll choose what I work on].
2. In the Your Home section, click on the Start/Revisit box next to Homebuyer Credit Repayment.  (See Screenshot #1 below.)
3. On the next screen, Tell Us About Your Homebuyer Credit, click the appropriate Yes box, enter the Date of Purchase, and then click Continue.  (Screenshot #2)
4. Continue through the screens, entering the requested information.

The following FAQ contains additional information concerning the 2008 Homebuyer Credit.