Repaying Homebuyers Credit

Today TaxMama hears from Paul in the TaxQuips Forum with this question. “How do I start paying back the $7,500 homeowner credit from 2008? We know we’re supposed to pay it back in 15 installments of $500 each year; but we can’t find a line to enter it on the 1040 form for 2009.”

Well Paul,

There’s a good reason you can’t find a place on the 2009 Form 1040 to enter the $500 payback.

As Mark Taylor explains, this tax-free loan starts getting paid back in 2010 – and he  provides a link to an IRS article that explains this.,,id=186831,00.html

Since you know you’re going to owe this extra $500 on your 2010 tax return, IRS recommends that you increase your withholding this year to absorb the additional tax.

Sounds like a good idea.

And remember, you can find answers to all kinds of questions about repaying the 2008 first time homebuyers credit and other tax issues, free. Where? Where else? At

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