First Time Home Buyer Tax Credit

First-Time Home Buyer Tax Credit

Are you curious about the first-time home buyer tax credit? It's not what you think. You can actually take advantage of it if you have not owned a home in the past 3 years. To qualify for the tax credit, a home must be purchased during the period from January 1, 2009 to December 1, 2009. In order to qualify for the full $8,000 tax credit, the house you purchase must be at least $80,000. The income limit for married taxpayers filing jointly is $150,000 and for singles, $75,000. In terms of income, we are referring to the adjusted gross income on your tax return. The most significant difference between this tax credit and the one Congress approved in July of 2008 is that YOU DON'T NEED TO REPAY IT! The following types of homes qualify: mobile homes, townhouses, houseboats, condos, single family homes; basically, they all qualify. To take advantage of the tax credit, you must claim it on your federal tax return. Vacation homes and rental properties are not eligible. If you are eligible for an $8,000 credit but your entire income tax liability for the year is less, you may claim the rest as a refund. One caveat: you must stay in your home at least 3 years in order to not have to repay the tax credit. Now go out and buy that home. You may not get another opportunity like this again.

For more information, check out the American Recovery and Reinvestment act of 2009.