(Update2)

$8,000 is a tax refund. Meaning if you owe less than $8,000 in tax, you still get a full $8,000 tax credit as refund check. Below is 3 scenarios for better understanding.

Scenario 1: If your tax liability is $6,000 and you paid $6,000 from your payroll witholding, you will get the entire $8,000 tax credit as a refund check.

Scenario 2: If your tax liability is $6,000 and you overpaid $1,000 through your payroll witholding, you will get the $8,000 credit plus $1,000 that you overpaid. A total of $9,000 as a refund check.

Scenario 3: If your tax liability is $6,000 and you underpaid $1,000 through your payroll witholding, you will get the $8,000 credit minus $1,000 that you underpaid. A total of $7,000 as a refund check.

Source: Yahoo! Real Estate
                                                                                                                                                 

This is an update to my previous post about the proposed $15,000 tax credit for home buyer. The outline of the latest $8,000 tax credit is far from the proposed $15,000. However, it is enhanced from the previous $7,500 tax credit that Congress enacted in July 2008.

The following points are based on National Association of Home Builder web site: http://www.federalhousingtaxcredit.com/2009/home2.html

Please visit the link above for detail information.

Here are the key differences
1.  $8,000 tax credit does not need to be repaid.
2.  The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.

The new $8,000 tax credit is similar to the $7,500 tax credit enacted in July 2008:
1.   Only FIRST TIME HOME BUYERS are eligible for $8,000 tax credit.
2.   Income restriction: Single taxpayers with incomes up to $75,000 and married couples with income up to $150,000 qualify for the full tax credit.
3.  The tax credit is equal to 10% of the home's purchase price up to a maximum of $8,000.

If you need real estate advice, feel free to contact me or visit www.westsidehomefinder.com. If you are interested in seeing if now could be a good time to refinanance your home, or get pre-qualified for a loan to purchase a property, don't hesitate to contact me or visit www.realpromortgage.com.