Who is eligible to receive the new $8,000 tax credit

Who is eligible to receive the new $8,000 tax credit? This is not a reduction of $8,000 in your income but is an actual $8,000 back into your pocket!

Anyone who has not owned a home in the last three years, are eligible for a direct $8,000 reduction in their taxes. This means if someone has paid in $10,000 in payroll taxes then they will receive $8,000 back. That is a dollar for dollar return!  Additionally, you have the choice of taking the credit in either 2008 or 2009. Whichever, is more beneficial to you.

Below are the requirements to receive this benefit:

1. You had to vote Democratic. (No, just kidding.)

2. You cannot have owned a home during the last three years.

3. You must purchase the property between Jan. 1, 2009 and Dec. 1, 2009.

4. The property must be your principal residence.

5. You must remain in the home for 3 years or longer.

6. The value of the home must be greater than $80,000. Otherwise, your deduction is 10% of the value of the home.

7. If married, your income must be < $150,000. If single, you income must be < $75,000.