Don’t expect the federal government to send you a letter reminding you of how much you owe on First-Time Homebuyer Credit.
That task is no longer on the government’s to-do list.
Instead, the Internal Revenue Service has created a Web site that includes a look-up tool that will help people report the repayment of the credit on their tax return.
What is this credit that I speak of?
In 2008, the government issued a one-time refundable credit of $7,500, or 10 percent of purchase price, to first-time homebuyers.
But, this was not free money.
For example, a buyer who claimed the $7,500 credit on their 2008 return agreed to pay back that money in $500 annual increments deducted from their income taxes for 15 years starting in 2010.
You might want to check if you missed a few payment on what is essentially an interest-free loan.
The online look-up tool shows the original amount of the credit, annual repayment amounts, the total amount paid and the remaining balance. Just make sure you have your Social Security number and address handy.