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Dear Liz: I received the $7,500 first-time home buyer tax credit for the house I bought last year, but I understand I have to pay that back over 15 years. Under the new stimulus plan, the tax credit went up $8,000 and doesn’t have to be paid back. Is there a plan to relieve the people from paying back the $7,500 or is it a dead issue?
Answer: When Congress changed the credit, it didn’t go back and change the rules for last year. So as of this writing, you’re still required to pay back the $7,500, even though someone who buys a home this year and qualifies for the larger credit won’t face the same requirement.
Raise the issue with your congressional representatives. You can find them at www.house.gov and www.senate.gov.

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Categories : Q&A, Taxes