Qualified for a tax credit... Whats the catch?

[f8lbite04svt]

Hey all, I bought a home last year, and according to my tax preparer, I can opt for a $3300 tax 'loan', interest free. Deal is that I will be paying it back with the next 15 years tax refunds. (Meaning that for the next 15 years, my income tax refund will be $220 less than it should be)

Is there a catch to this? Can I pay it off early? Will I be penalized for paying off early? :shrug:

 

[About2bite]

Don't they give you 5k this year and they hold 3k for next year to lower your tax liability? I have yet to hear anything about taking out a loan with your taxes for buying a house, I just heard they increased the loan amount to 8k from 7500.

 

[f8lbite04svt]

Have no clue. This is the first house I've ever bought and I'm just now realizing all the extra tax stuff that comes with it.

I think I only qualified for 3300 because of my income and the fact that I'm single with no dependents.