Information on $8000 federal tax credit

Buy a home in 2009 and take advantage of the federal tax credit!

Basics on the program:

Who can receive the credit?
Only first-time home buyers are eligible and they must close between January 1, 2009 and December 1, 2009. Investors or people purchasing a second home can not receive this credit.

Who is a first-time home buyer?
A buyer who has not owned a principal residence in the 3 previous years before buying a home. If you are married taxpayers, neither you nor your spouse can own a primary residence.

How is the amount of the tax credit determined?
It is limited to 10% of the sales price of the home, but a maximum of $8,000.

What are the income limits on people claiming the tax credit?
For single taxpayers the income limit is $75,000 and for married taxpayers filing a joint return it's $150,000.

How do I claim the tax credit?
Simply claim it on your federal income tax return; just fill out IRS Form 5405 to help you know how much to claim and write it on Line 69 of your 1040 income tax return. No other forms are required.

An important difference between this tax credit and the $7,500 credit put into effect July 2008, is that this $8,000 does not have to be paid back! The only stipulation is that you must live in the home as your principle residence for at least three years, if you don't you will have to pay back the credit.