Thinking About Buying Your First Home? Maybe $8,000 Will Help!

The new American Recovery and Reinvestment Act (ARRA) included a new $8,000 first-time homebuyer tax credit for 2009 home purchases. If you've recently purchased a home or are thinking about buying a home you have several different ways you can receive this tax credit -- even if you've already filed your tax return.

Qualifying taxpayers who buy a home between January 1, 2009, and December 1, 2009 can claim up to $8,000 or $4,000 for married individuals filing separately. You can claim the credit either on your 2008 tax returns or 2009 tax return next year. The credit begins to phase out at a modified adjusted gross income of more than $75,000 or $150,000 for joint filers. But if you make less than that you can claim 10% of the purchase price up to the maximum credit.

The filing options to consider are listed below:

• File an extension.  If you haven't yet filed your 2008 return but are buying a home soon, you can request a six-month extension to October 15th. This step would be faster than waiting until next year to claim it on your 2009 tax return. Even with an extension, you could still file electronically, receiving your refund in as few as 10 days with direct deposit.

• File now, amend later.  If you're expecting a sizable refund on your 2008 tax return but you're also considering buying a house in the next few months, you can file your return now and claim the credit later. You would file your 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.

• Amend your 2008 tax return.  If you're buying a home in the near future , but you've already filed your 2008 tax return, you can consider filing an amended tax return. The amended tax return will allow you to claim the homebuyer crdit on your 2008 return without waiting until next year to claim it on the 2009 return.

• Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when you file your 2009 tax return rather than claiming it now on the 2008 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

For more information on the new tax credit, see the IRS website.