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$8,000 First Time Homebuyer Tax Credit
First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.
Yes if you have already purchase your home you can take the credit on your 2008 tax return. Or if you have already filed your 2008 return and can file an amended return and take the credit now!.
The $8,000 credit is cold hard CASH IN YOUR POCKET !!!!
Look at the following 3 examples:
Example 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.
Example 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.
Example 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of ... more
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