Repaying the 2008 Home-Buyer Credit
People who accepted the tax credit to buy a first home in 2008 will have to start paying it back next year.

My daughter bought a condominium in 2008. Does she still need to pay back the 2008 first-time home-buyer credit? I heard that she does, but that doesn’t seem fair.
Sometimes life isn’t fair -- she does need to pay back the credit. The 2008 first-time home-buyer credit wasn’t nearly as generous as the current credit.
People who bought first homes from April 9, 2008, through December 31, 2008, could receive a tax credit of up to $7,500 if they hadn’t owned a home in the three years leading up to the purchase of their new home. But that credit must be repaid over 15 years, starting two years after they claim the credit.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Your daughter doesn’t need to do anything this year, but she must start repaying the credit when she files her 2010 tax return next spring. If she got the maximum $7,500 credit, she must add $500 to her income tax bill each year for the next 15 years. And, if she stops using the condo as her primary residence, any remaining balance of the credit must be repaid when she files her tax return for the year she sold the home or moved. The payback amount, however, can’t exceed the amount of profit made on the sale.
The newer version of the first-time home-buyer tax credit is different. People who close on a new home from January 1, 2009, to June 30, 2010 (and sign a binding contract by April 30, 2010), can qualify for a first-time home-buyer credit of up to $8,000. This credit doesn’t need to be repaid, as long as they live in the home for at least three years. For more information about the rules for the 2009 and 2010 credit, see FAQs on the New Home Buyer Tax Credits. For details about the 2008, 2009 and 2010 credits, see the IRS’s First-Time Home Buyer Credit: Answers.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)
State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
Want To Retire at 55? See If You Can Answer These Five Questions
Who said you can’t retire at 55? If you say yes to these questions, you may be on your way to an early retirement.
-
Ask the Editor, September 12: Tax Questions on 529 Plan Rollovers to a Roth IRA
Ask the Editor In this week's Ask the Editor Q&A, we answer four questions from readers on transferring 529 plan money to a Roth IRA.
-
Standard Deduction 2025 Quiz: How Much Do You Really Know?
Quiz Test your knowledge of IRS rules that impact how much money you keep in your wallet.
-
New Bill Would End Taxes on Social Security Benefits in 2026: What Retirees Should Know
Tax Law Congress could look to high earners to help offset lost revenue and possibly shore up the Social Security program.
-
IRS in Turmoil: GOP Budget Cuts and Staff Shake-Ups Threaten Taxpayer Services
IRS Republican lawmakers advance a controversial budget bill that would gut IRS funding further, risking your 2026 tax filing season.
-
Ask the Editor, September 5: Tax Questions on SALT Deduction
Ask the Editor In this week's Ask the Editor Q&A, we answer questions from readers on the OBBB's changes to the SALT deduction.
-
New $6,000 'Senior Bonus' Deduction: What It Means for Taxpayers Age 65-Plus
Tax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.
-
Claiming the Standard Deduction? Here Are 10 Tax Breaks For Middle-Class Families in 2025
Tax Breaks Working middle-income Americans won’t need to itemize to claim these tax deductions and credits — if you qualify.
-
Over Age 65? New $6,000 'Senior Bonus' Deduction Is Available Even If You Itemize
Tax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.