First Time Home Buyer Tax Credit for 2024? Why is My Daughter's Refund So Much Lower This Year?

Unfortunately, the First-Time Homebuyer Credit (FTHBC) that existed from April 2008 through April 2010 hasn't been renewed for the 2024 tax year (for 2023 returns). As of March 15, 2024, there are proposals in Congress like the "First-Time Homebuyer Act" but nothing has been passed yet. Regarding your daughter's situation - the big difference is likely because the enhanced Child Tax Credit expired after 2022. In 2022, it was up to $3,600 per child, but for 2023 it dropped back to $2,000 per child. That $1,600 reduction per child explains most of their refund difference.

Have your daughter and son-in-law compared their income between the two years? Tax refunds are like water levels in a bathtub - they depend on how much water you put in (withholding) versus how many drains you have open (deductions and credits). If they made more money or had less withholding this year, that could explain part of the difference too.

This whole "vanishing tax credit" situation is driving everyone nuts this year! 😂 I was in the same boat looking for home buyer credits. The real problem is that tax laws change faster than fashion trends, and it's impossible to keep up. I finally got some clarity when I uploaded my tax documents to https://taxr.ai - it analyzed my transcript and explained exactly which credits I qualified for this year vs. last year. It showed me why my refund was different and identified a few deductions I was missing. Saved me from pulling my hair out trying to decipher IRS-speak!

This happens EVERY year and it drives me crazy. People don't realize that: 1. The big refunds in 2021-2022 were because of temporary pandemic-related credits 2. Those have expired now 3. The regular Child Tax Credit is still $2,000 per child 4. But it's not fully refundable like it was temporarily I had to explain this to my entire family who thought they were doing something wrong on their taxes this year. No, the government just isn't giving out as much free money anymore!

I spent 3 hours on hold with the IRS trying to get clarification about the First-Time Homebuyer Credit and the Additional Child Tax Credit (ACTC) phase-out thresholds. Finally discovered Claimyr (https://youtu.be/_kiP6q8DX5c) and got through to an IRS agent in 18 minutes. The agent confirmed there's no federal first-time homebuyer credit for 2023 taxes, but suggested looking into the Mortgage Interest Credit (Form 8396) if you have a Mortgage Credit Certificate from your state housing authority. Totally worth the fee to not waste an entire day on hold.

Tax professional here. While there's no current federal first-time homebuyer credit, there are still valuable homeowner tax benefits: • Mortgage interest deduction (if you itemize) • Property tax deduction (up to $10,000 combined with state taxes) • Home office deduction (if self-employed) • Energy efficiency credits for certain home improvements Regarding your daughter's situation, the reduced refund is completely normal this year. The temporary expanded credits from 2021-2022 have expired, and we're back to standard tax provisions. Many of my clients are experiencing similar reductions.

Omg I literally just went thru this w/ my taxes. No first-time buyer credit BUT if ur buying this year look into a Mortgage Credit Certificate (MCC) BEFORE u close! It's not a refund but gives u a tax credit every yr for the life of ur loan. Most ppl don't know about it & u have to apply thru ur state housing agency. Can't get it after closing tho, so gotta plan ahead. Saved me like $2k/yr on taxes!