Lawmakers tried to get you $15,000 but settled on $8,000. The next stimulus package called the American Recovery and Reinvestment Act of 2009, has been passed by Congress and signed into law.

So what does that mean to you?

Details were still sketchy but here's what to expect:

- The tax credit increases from $7,500 to $8,000.
- Anyone who has not owned a home in the last 36 months is eligible.
- The new provisions begin January 1, 2009 and will extend through the end of the year.
- The tax credit does not have to be paid back if the buyer stays in the home for at least 3 years.
- No changes to income eligibility: Buyers must make less than $75,000 for singles and $150,000 for couples. If you make more money than that you may be eligible for a partial credit.

How do you get the money? Here are a couple examples:

Example: At the end of the year your tax liability is $5,000, but you've overpaid by $1,000 through your withholdings. Normally, you would get a $1,000 refund check from the IRS. In this example, you get $9,000. The $8,000 credit plus the $1,000 you overpaid.

Example: Your final tax liability is $6,000, but you've underpaid through your payroll withholdings by $1,000. Normally, you would have to write the IRS a $1,000 check when you file your taxes. This time, the first $1,000 of the tax credit pays the amount you owe, and you get the remaining $7,000 as a refund.

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The not so good news: Those who bought a home last year and were eligible for the $7,500 credit. You still fall under the old rules requiring the tax credit to be paid back beginning in year 2010 at the rate of $500 a year.

Please contact me if you have any questions about this bill and how it may affect you.

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