2008 First Time Homebuyers Credit

[mcb39]

ALERT: Clients who bought their first home in 2008 and took the credit for $7500 (tax free loan) have been having to to pay it back starting in 2010. This year it is not rolling over in ATX to line 59b of the 1040 as it did in prior years. Nor is the client receiving a 1099 from the IRS. Had I not been working on a return that I knew had to make a $500 payment; it would have been missed and a year or so down the road the client would have received a penalty.

This tells me that we are going to have to ask all new clients if they are liable for the repayment. In 2010, they each got a letter and last year I know that it just automatically showed up on the 1040. This year buyers beware. It doesn't get caught in the Check Return either.

[mcb39]

ALERT: Clients who bought their first home in 2008 and took the credit for $7500 (tax free loan) have been having to to pay it back starting in 2010. This year it is not rolling over in ATX to line 59b of the 1040 as it did in prior years. Nor is the client receiving a 1099 from the IRS. Had I not been working on a return that I knew had to make a $500 payment; it would have been missed and a year or so down the road the client would have received a penalty.

This tells me that we are going to have to ask all new clients if they are liable for the repayment. In 2010, they each got a letter and last year I know that it just automatically showed up on the 1040. This year buyers beware. It doesn't get caught in the Check Return either.

This was fixed on a 1040 update tonight. Someone is watching!.

[kcjenkins]

Good to hear.

[Kea]

I had a new client a couple of years ago that didn't tell me about their 2008 FTHB "loan." It rejected and we were able to fix and re-e-file.

[Jack from Ohio]

Here is a tool from the IRS to get the exact information....

http://www.irs.gov/Individuals/First-Time-Homebuyer-Credit-Account-Look-up

[taxtrio]

^{I have had two returns with the 5405 problem... I reported both to support by faxing information to them.}

^{Nice to know they are listening!}

^Taxtrio