Home Members Tools Credit Cards
   

  • 2008 First Time Home Buyer Credit Causing Delays for Some Taxpayers' Refunds

    The Internal revenue Service made an announcement today that there are processing issues that may cause a delay in some taxpayers receiving their refunds. The delay is primarily affecting a small percentage of taxpayers who bought a home in 2008 and qualified for the First Time Homebuyer Credit, the IRS said.

    The credit was actually an interest-free loan for 10% of the home’s purchase price, up to a maximum of $8000. The credit is to be repaid, at tax time, to the U.S. Treasury over the 15 equal annual installments beginning in the 2010 tax year.

    Married Filing Joint taxpayers who received the First Time Homebuyer Credit on a 2008 purchase may find their refunds delayed, mostly taxpayers in this group who filed their returns before February 22. The IRS is manually entering these returns as quickly as possible and expects most of these refunds to be issued by April 5 as long as there are no other issues with the taxpayer’s return.

    Others who may find their refunds delayed include taxpayers who received the First Time Homebuyer Credit and are attempting to pay back more than the amount required or those who are now reporting the sale or disposition of their home for which they received the tax credit.

    The IRS is working on changing their core tax processing systems to enable them to process these types of returns, and doesn’t yet have a specific date for when the updates will be complete, but it will be some time in April.

    “We appreciate that taxpayers affected by this issue are anxious to get the status of their refund,” the IRS said in a statement.

    Taxpayers who have already filed can check “Where’s My Refund” at www.IRS.gov for updates. Because the IRS is already aware of this issue and is taking corrective action, there is no need to call. For those who have not yet filed and are making a repayment of a First Time Homebuyer Credit this year, there is a simple step taxpayers can take to help speed processing.

    Couples filing a joint return for tax year 2010 who received the credit on their jointly filed 2008 tax return should file two 5405 forms, one for each taxpayer. For couples filing a joint return for 2010 but who had a different filing status in 2008 and only one spouse received the credit, the IRS recommends filing one Form 5405 for the taxpayer who received the credit.

    The IRS said that taxpayers who bought a home in 2010 are not affected and that their tax returns should process normally.



    Source:
    Internal Revenue Service
  • Disclaimer

    Information in these articles is brought to you by Finance Globe. Banks, issuers, credit card, and other companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles and is further subject to our terms and conditions.
  • Recent Forum Posts

    bocald99

    Re: Report Your "Credit limit Increases" Here!

    Awesome CLI! Was it an auto increase or did you request? Was it your first increase in 11 months?

    bocald99 April 12th, 2014, 06:57 PM Go to last post
    Succeedin2

    Re: Report Your "Credit limit Increases" Here!

    My Discover It Card CLI increased from 13k to 15k I've had it 11 months. My other cards (4) Cards are new but I'm looking forward to them increasing

    Succeedin2 April 12th, 2014, 12:38 AM Go to last post
  • Recent Headlines and Articles

    ChrisB

    Quick Tips for Choosing the Right Financial Planner

    If you are serious about your financial situation and hope to make all the best decisions for your future, it may be time to hire a professional. But not just any professional. You need to find a local financial... read more
    ChrisB April 16th, 2014, 08:35 AM
    Mary Tomkins

    Today's the Deadline to File Your Tax Return

    If you haven't already done so, today's the day to file your return and pay your 2013 taxes. If you need more time to complete your return, you can submit IRS Form 4868 to request a six-month extension.... read more
    Mary Tomkins April 15th, 2014, 01:16 PM
    ChrisB

    Methods for Dealing with a Home Insurance Increase

    Even though you understand the importance of having a high quality home insurance policy in place, there may come a time when you feel that you are paying too much.

    What are you going to do next?... read more
    ChrisB April 15th, 2014, 09:05 AM
    ChrisB

    How to Improve the Chance of Quickly Selling your Home

    Are you putting your home up for sale in the near future? Are you hoping to make a quick sale? If you answered yes to both these questions, there are steps you can take to improve the chance of... read more
    ChrisB April 10th, 2014, 08:01 AM
    ChrisB

    3 Questions to Ask your Car Insurance Agent Today

    There is no better feeling than having a good relationship with your car insurance agent. You know you can ask this person whatever is on your mind, and that you will get an accurate answer without delay.... read more
    ChrisB April 8th, 2014, 08:04 AM

 

 

 

Credit Cards | Finance Social Network | Credit Card Reviews | Markets
About Us | FG on the Web | Sitemap | Privacy | Terms | Contact


Copyright © 2014 Finance Globe. All rights reserved.