Your Money: Homebuyer Credits and Tax Refunds

Can people who received last year's first-time homebuyer credit apply for the new one this year? And what if you filed your taxes early, but rather than a refund were instead informed that your return is being reviewed. What should you expect?

These are just a couple of the concerns that AP personal finance writers tackle in the latest installment of "Your Money." If you have a personal finance question that you'd like to see answered, send it to yourmoney(at)ap.org. Please include your full name and hometown so they can be published with your question.

Q: If someone already received $7,500 for the first-time homebuyer credit, can they also receive the $8,000 credit that is part of the new stimulus plan?

-- Dennis Cho, Overland Park, Kan.

A: No. The first program, which in practice was more of an interest-free loan, is for people who bought homes between April 9, 2008 through the end of 2008.

The new $8,000 tax credit, which does not have to be repaid, is for people who bought or buy homes between Jan. 1 through the end of November this year.

"The more generous program this year reflects that the housing market has not yet stabilized," said Robert Dietz, an economist with the National Association of Home Builders.

Both programs are for first-time buyers, which is defined as anyone who didn't own their principal home in the three years leading up to the home purchase, Dietz said.