Note: This is intended to provide an overview only - for specific information or individual concerns, please contact your lawyer, accountant and/or financial advisor.
Who Qualifies for $8,000 Tax Credit
- 1st Time homebuyers: Haven't owned a home in the past 3 years
- 1st Time homebuyers who purchases a home between Jan 1, 2009 and Nov 30, 2009
- Must be used for primary residence for at least 3 years
Who does not qualify for $8,000 Tax Credit
- Buying a home from a close relative
- Non resident aliens
- Anyone who stops using the home as main residence
- Purchaser's whose gross income exceeds $95,000 (Single) and $170,000 (Married)
Repayment
- 2009 Tax Credit does not have to be repaid as long as you live in the home for 3 years
Refundable Tax Credit
- $8,000 Tax Credit is a refundable tax credit
- Refundable Tax Credit: Tax credits may be characterized as either refundable or non-refundable. Refundable can reduce the tax owed below zero, and result in a net payment to the taxpayer beyond their own payments into the tax system, appearing to be a moderate form of negative income tax. This means you can receive money back.
Limitations
- Homes can be a Condo, Single Family Residence, Co-op, or townhouse
- New Construction homes must be occupied by Dec 1, 2009
- Vacation, Investment, and Rental homes not eligible
- Tax Credit equals 10% of purchase price with max of $8,000
- Homes less than $80,000 will receive less than $8,000 respectively
- Purchaser's whose gross income exceeds $75,000 (Single) and $150,000 (Married) will receive a proportionally reduced tax credit as income approaches $95,000 (Single) and $170,000 (Married).
When can someone file to receive their $8,000 Tax Credit
- 2008 Tax Return
- Amended 2008 Tax Return
- 2009Tax Return
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