Oh my! Half of Americans Claiming Homebuyer Tax Credit in 2009 May Have to Repay the Money!

What the government gives, the government can take away. CNN Money is reporting as many as half of homebuyers claiming the $7500 credit will have to repay the money. The confusion is over the two kinds of programs the government created. If they bought their house during 2008, they money was really a no-interest loan that had to be repaid within 15 years. If they bought in 2009, the credit is a refund and doesn't have to be repaid.

According to a report from the Inspector General for Tax Administration, released to the public Thursday, about 950,000 of the nearly 1.8 million Americans who claimed the tax credit on their 2009 tax returns will have to return the money.

The confusion comes because homebuyers were eligible for two different credits, depending on when their homes were purchased.