Tri Cities Washington | The $8000. Home Tax Credit

The State of Washington is all set to go for the $8,000 tax credit bridge loan for first time homebuyers. However, the IRS is not.

Currently, the way the $8,000 tax credit works for a first time homebuyer (a first time homebuyer is defined as someone who hasn’t owned a home in the past 3 years) is he/she will purchase a home then file an amended tax return to get the tax credit.

For the $8,000 tax credit bridge loan, the down payment would be advanced to the buyer thru a third party then paid back to the third party when the buyer gets their refund from their amended return. However, with an amended return the refund has to be mailed to the buyer at his/her current address. This is where the IRS comes in, the State of Washington and Washington Association of Realtors are working with the IRS to have the refund made payable to the third party handling the funds instead of the buyer.

Personally, I hope they get the fund handling issue hammered out soon. Originally posted at 8000 home tax housing credit.