I know the big buzz is everywhere about the great tax credit for first time home buyers and I will have to jump in and talk about this great incentive too!  Here is a simple run down of what to expect!

• First time home buyers only
• the tax credit does not have to be paid back
• the tax credit is equal to 10 percent of the home's purchase price up to a maximum $8,000
• The credit is available for homes purchased on or after Jan 1, 2009 and before Dec 2009
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the tax credit.

Simply put, how this works:

To claim your tax credit, you will claim it on your federal income tax return.  Specifically, home buyers should complete IRS form 5405 to determine their tax credit amount and then claim this amount on line 69 of their 1040 income tax return.  No other applications or forms are required, and no pre-approval is necessary.  However, you will want to be sure that you qualify for the credit under the income limits and first time home buyer tests.

For example, when you file your return next year, if you qualify for the full $8,000 credit and owe $1,000 on your tax return, you will receive a check for $7,000.

For more information on the 2009 tax credit, click for the Federal Housing Tax credit website.