The original first-time home buyer tax credit provided buyers with a tax credit of up to $7,500. This was originally offered in 2008. This credit was actually a short term loan that had to be repaid. The tax break was expanded, with a new credit limit of $8,000 for first-time home buyers and $6,500 for homeowners seeking to move into another residence.
If you took advantage of the 2008 First-Time Home buyer Credit that you have to repay, the installment payment is what is being entered into your current Turbo Tax return.
To get to this section in TurboTax Free Edition online,
- Search for homebuyer credit in your TurboTax program and then click the "Jump to" link in the search results.
- Answer yes,
- Enter the date your home was purchased, and follow the on-screen instructions.
The video below explains more about the First Time Homebuyer Credit.