• Some Home Buyers Will Have To Repay Tax Credit

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    DEKALB COUNTY, Ga.,None - When the IRS offered a huge tax credit for first-time home buyers, tens of thousands jumped at the chance, but many are saying they got burned because they jumped too soon.

    The government recently changed the rules so that those buying after Janu. 1, 2009 were eligible for up to $8,000 in free money.

    Some Home buyers Will Have To Repay Tax Credit

    Homeowner Susannah Johnson told Channel 2 consumer investigator Jim Strickland that she bought her house five months before the rule was changed.

    "It's kind of unfair because those people don't have to pay it back, and I have to pay almost $500 out of my tax return for the next 15 years," said homeowner Susannah Johnson. "I'm dealing with it."

    Jill Woodward said her accountant told her it was a loan, not a tax credit. She bought her home in December 2008.

    "We were three weeks shy of getting $8,000," said DeKalb County homeowner Jill Woodard.

    A report released this week from the Treasury Inspector General for Tax Administration reveals home buyers claimed $12.5 billion on 2009 tax returns, but more than half must the repay the credit. They bought their homes in 2008 instead of 2009.

    Congress made the change after the New Year was well under way.

    "For people who bought their house in 2008 they said, ‘If knew this I would have waited a couple of weeks and closed in 2009.' But everything was done after the fact, so no one could do any planning," said Marietta CPA John Michael Miller.

    The federal report also shows 60,000 buyers who bought in 2009 may get bills in error because the IRS has their purchase dates wrong.

    Strickland called the IRS looking for specific numbers about Georgia, and was told a state-by-state breakdown is unavailable.

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