Don't miss a TRUE $8000 GIFT!

How much is the tax credit?

The maximum credit amount is $8000 or 10% of the cost of the home if the home price is less than $80,000.

What type of property is eligible?

Any single family residence (including condos, co-ops, townhouses) that will be used as a primary residence.

Is it a tax credit or tax deduction?

It is a tax credit. A credit reduces taxes owed after all standard deductions are calculated.

Is there a limit depending on income?

Yes. The full amount of credit is available for individuals with adjusted gross income of no more than $75,000 ($150,000 for a joint return.) It phases out above those caps until it reaches zero for individuals with income over $95,000.  ($170,000 joint returns).

Who qualifies as a first-time buyer(s)?

Anyone who has not owned or purchased a primary residence in the last three years is considered a first-time buyer in this program.

Can the buyer receive the credit if they're financed with state or local bonds?

Yes.

Does the buyer have to repay the credit?

The buyer(s) must live in the home for at least three years; otherwise the credit must be repaid.

When does the tax credit program begin?

January 1, 2009.

When does the tax credit program end?

November 30, 2009.

How do homebuyers claim the tax credit?

Participants claim the tax credit on their federal tax return. The homebuyer would enter the $8000, or 10% of the home's cost, as a tax credit. This reduces any taxes owed or increases the refund to the homeowner.  There is no application form to be filled out.