Comments on: Can I Prepay First-time Home Buyer Credit In Larger Amounts?

By: v b

v b — Mon, 10 Aug 2009 10:12:44 +0000

Nope, it’s 1/15th per year. Anything extra would be refunded to you.

By: CarVolun

CarVolun — Mon, 10 Aug 2009 07:46:32 +0000

Why would you do that? If you feel the need to do it, just set up a separate savings account and put the extra there. Also, remember that if you sell and make no profit, you don’t repay. The repayment comes out of the profit on the home.

By: Wayne Z

Wayne Z — Mon, 10 Aug 2009 02:07:23 +0000

This issue has not been addressed by the IRS as of yet.
According to the IRS person I spoke with, as the payments do not start until 2010, they really haven’t thought about it yet.
I would expect there to be a line in the “tax” portion of the 1040 starting in 2010 where you can input an amount to pay back.

By: hrblock.

hrblock. — Mon, 10 Aug 2009 00:53:18 +0000

Since this is so new I doubt that this scenario has been considered. There will have to be a line on the income tax return for 2010 to account for these payments. I could not imagine that the IRS would not accept larger amounts at that time. With the changes in the credit happening right now with the new bill, they will be putting forth more info in the future as to the repayments.
I know this is not helpful, but just be patient and hopefully we will have the answers soon.
Laura H – H&R Block – Senior Tax Advisor 5
**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.