Another tax question-homebuyer credit

[Malibustyle23]

So we just got our taxes filed at H&R Block. Now we are in the group of first time home buyers that have to pay back the credit we recieved last year but the tax rep couldnt find the place to put it and just left it off. She said maybe the IRS would just take it out automatically. Does anyone know if that is true and also if I call the # to check the status to I do that amount or the amount after the deduction? Thanks!

 

[mamaLori05]

I don't know for sure, but I don't think the IRS does ANYTHING automatically. I'm pretty sure there is a place for it somewhere.

 

[msmayor]

So we just got our taxes filed at H&R Block. Now we are in the group of first time home buyers that have to pay back the credit we recieved last year but the tax rep couldnt find the place to put it and just left it off. She said maybe the IRS would just take it out automatically. Does anyone know if that is true and also if I call the # to check the status to I do that amount or the amount after the deduction? Thanks!

Wait...you took your taxes to H&R Block...you PAID them to do your taxes...and the rep admitted to you that he/she couldn't 'find' the place to put this information so they just left it off?????

I would be over at that office demanding my money back. If they are holding themselves out as a company that will do your taxes the right way, they should never be saying "I didn't know where it went, so I just left it off".

 

[CF'er]

I hate to say it but you need to find out where to put this information and file an ammended return. The IRS will find it and you will pay. Maybe not this year but they will find it.

 

[Cheshire Figment]

The representative should have been able to answer your question. Actually, the answer is that you do not have to make any payment on the 2009 tax return. If you go to http://www.irs.gov/newsroom/article/0,,id=206292,00.html you will see

The first-time homebuyer credit will be recaptured on Form 1040 as additional tax and is repaid in 15 equal annual installments beginning in the second tax year after the year in which the credit is claimed.

(bolding added by me) and the first installment is not due until the filing of the 2010 return in 2011.

Mike (CPA Retired but still with about 20 tax clients)

 

[Malibustyle23]

The representative should have been able to answer your question. Actually, the answer is that you do not have to make any payment on the 2009 tax return. If you go to http://www.irs.gov/newsroom/article/0,,id=206292,00.html you will see (bolding added by me) and the first installment is not due until the filing of the 2010 return in 2011.

Mike (CPA Retired but still with about 20 tax clients)

Thankyou very much. That was beyond helpful! And I already know H&R Block will not have me as a repeat customer next and Ill be writing a letter about my experieence to them.

 

[terrier72]

I thought that I had read somewhere where the government was considering going back and reversing having to pay back this credit. I havent heard anything else lately has anyone else?

 

[bmb3]

I thought that I had read somewhere where the government was considering going back and reversing having to pay back this credit. I havent heard anything else lately has anyone else?

Please tell me this is true...we bought our house 'too early.' If we had waited 4 months, we wouldn't have to pay this back! Ridiculous! The economy wasn't any better then either!

 

[Malibustyle23]

I thought that I had read somewhere where the government was considering going back and reversing having to pay back this credit. I havent heard anything else lately has anyone else?

Yeah my mortgage consultant told me they were thinking it over a long time ago but ive given up hope. I figure if it hasn't happened by now it won't. Although I am grateful its very hard not to be overcome with envy for the later buyers. I feel like this situation goes against everything I was taught in elementary school!

 

[bootleg89]

Yeah, I also bought too early- by 19 days. Man was I upset. Wer could have held off closing till after the new year.

 

[Cheshire Figment]

I thought that I had read somewhere where the government was considering going back and reversing having to pay back this credit. I haven't heard anything else lately has anyone else?

I have learned, over many years doing professional tax preparation, that until I read (preferably in the professional literature) that "Both Houses of Congress have passed and the President has signed" I will not believe anything about tax changes. (And my wife worked for the IRS National Headquarters for about 12 years until she retired at the end of 2002.)

Mike (CPA Retired)