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What’s the difference between the DC First-time homebuyer credit and the First-time homebuyer credit?

The D.C. First-Time Homebuyer credit was a federal tax credit that was available to first-time homebuyers in the District of Columbia who purchased a home as their primary residence in 2008, 2009, or 2010. 

Go to this section in Credit Karma Tax: DC First-Time Homebuyer Credit

The credit was the smaller of:

  • $5,000, if single, married filing jointly, head-of-household, or qualifying widow(er) ($2,500, if married filing separately), or
  • The purchase price of the home.

This credit expired in 2011; however, if you claimed the credit in a prior year and was not able to take the entire amount of the credit in a prior year, the excess may be carried forward to use on next year’s tax return until it is all used up.
Source: irs.gov

The First-Time Homebuyer credit was an additional tax credit for homebuyers who purchased their first home between 2008 through 2010. This credit expired after 2010; however, there are certain situations where the credit has to be repaid.
Source: irs.gov

Do I need to repay my First-Time Homebuyer Credit?

If you qualified for the First-Time Homebuyer Credit in 2008, you are required to repay the credit at a rate of up to $500 per year for 15 years.

Go to this section in Credit Karma Tax: First-Time Home Credit Repayment

For example: If you bought a home in 2008 and claimed the maximum credit of $7,500, the repayment amount would be $500 per year.

The First Time Homebuyer Look-up Tool is available to all taxpayers who received the First-Time Homebuyer Credit. This tool provides account information for the repayment of the tax credit including:

  • The year your home was purchased
  • The amount of the tax credit you received
  • Your annual installment repayment amount
  • Your remaining tax credit balance

Source: irs.gov

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