Your Money: Homebuyer Credits and Tax Refunds

There are income limits to be eligible for either credit. The cap is $75,000 for individuals and $150,000 for married couples.

Individuals who earn between $75,000 and $90,000 and couples who earn between $150,000 and $170,000 can apply for a partial credit.

The credits are for 10% of the home price, with a maximum of $7,500 or $8,000 depending on which program applies to you. For this year's credit, you also need to own the home for three years after you buy it. If you sell it before then, you have to repay the money.

-- Candice Choi

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Q. I filed my tax return early hoping to get my refund quickly, but it hasn't arrived. When I checked the Internal Revenue Service Web site's "Where's my refund?" link, a notice appeared that said, "We have received your return and it is being reviewed.... You may or may not receive all or part of your refund until the requested information is received." What does this message mean?

-- Rick Fountain

A. Such a message from the IRS could mean any number of things. It could be anything from minor issues like missing paperwork, to a potential audit, said Jay Safier, a principal in the New York accounting firm of Rosen, Seymour, Shapss, Martin & Company.

But there's no reason for panic.

Just over 1% of all tax returns filed last year were audited, or "examined" in IRS language. The chances of an audit rise with income, so less than 1% of people who earned below $200,000 were audited last year, while that figure rose to 5.6% for people who earned $1 million or more.