: Their joint modified adjusted gross income (MAGI) had to be below $225,000 to receive the full credit. The Benefit and the Paperwork
For this couple, the $6,500 acted as a "second chance" at government aid. Unlike the original 2008 credit, which was essentially an interest-free loan that had to be paid back over 15 years, the 2010 version was a . This meant if they kept the home for at least 36 months, they never had to pay it back. However, the process was notoriously complex:
: The IRS required every claimant to file a paper return and attach Form 5405 along with a settlement statement to prevent fraud.
: Their joint modified adjusted gross income (MAGI) had to be below $225,000 to receive the full credit. The Benefit and the Paperwork
For this couple, the $6,500 acted as a "second chance" at government aid. Unlike the original 2008 credit, which was essentially an interest-free loan that had to be paid back over 15 years, the 2010 version was a . This meant if they kept the home for at least 36 months, they never had to pay it back. However, the process was notoriously complex:
: The IRS required every claimant to file a paper return and attach Form 5405 along with a settlement statement to prevent fraud.