Team Clark is adamant that we will never write content influenced by or paid for by an advertiser. To support our work, we do make money from some links to companies and deals on our site. Learn more about our guarantee here.
Thousands of people who took advantage of federal tax credits to buy a home in 2008 or 2009 have received notices from the IRS incorrectly stating they either owe money or they’re due money back.
Syndicated real estate writer Kenneth Harney reports that the IRS has basically had a nervous breakdown trying to deal with the complicated tax credit programs that four million people took advantage of.
Part of the problem is the multiplicity of flavors the program came in. In one situation, you had to pay the money back. In another, you just got the money. Another was only for true first-time homebuyers. Yet another was for both first-time and subsequent home buyers.
Here’s what’s going on now, according to Harney:
Here’s what you need to know: Keep your records of your home purchase for decades to come. At a minimum, you should keep those records for 15 years from when you purchase your home. It’s normal in America to toss your tax records out after a few years. Do not do that in this case.
You never know when you’ll need to prove what the terms of your purchase and the tax credit you were told you would get.
This post was last modified on March 22, 2017 2:29 pm
If you plan to take an international flight or cruise anytime soon, there's one free…
Pop quiz: What's money expert Clark Howard's favorite tax-advantaged retirement tool? If you guessed Roth…
Are you considering subscribing to NFL Sunday Ticket for the upcoming season? Now may be…
Did you know major changes are coming for the way credit card processing fees are…
There’s a lot to love about Costco. The company has deals on just about every…
Money expert Clark Howard started a travel agency in his mid-20s and grew it into…