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Why didn't the first-time homebuyer exception take away my tax liability?

It went away when answering the first-time home buyer questions but went back up some when answering the Roth questions
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2 Replies
JotikaT2
Employee Tax Expert

Why didn't the first-time homebuyer exception take away my tax liability?

Can you clarify what first-time homebuyer exception you are referring to?

 

There is a proposed bill that if passed, would provide a mortgage relief credit for first time home buyers.  However, it has not passed yet and therefore, does not affect your 2023 income tax return.

 

The last time a first-time homebuyer credit was in effect was for purchases that occurred from 2008-2010.  Please see this link for additional information.

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Why didn't the first-time homebuyer exception take away my tax liability?

Did you take a IRA distribution early to buy a house?  That is just an exception to the 10% Early Withdrawal Penalty.  You still owe the tax on it.  

 

For the ROTH.  Did you make a contribution?  You may have contributed over the max allowed.  Or did you convert a IRA to a ROTH IRA?  That is taxable.  

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