Effective January 1, 2009, qualified homebuyers may be eligible for a federal tax credit of up to $8,000!
Below are some of the key highlights of the program1
For first time home buyers only: Qualifying homebuyers have not owned a principal residence during the three year period prior to purchase.
Amount of Tax Credit: 10% of the home's purchase price up to a maximum of $8,000.
Limited Time Only: The tax credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
No Repayment Required: Unlike the previous tax credit, this tax credit does not have to be repaid, but homebuyers must use the residence as a principal residence for at least three years.
Tax Credit is Refundable: The homebuyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. A refund check may be issued to the taxpayer for a portion or even all of the refundable tax credit (depending on the taxpayer's tax liability).
Income Restrictions: Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit (partial tax credits may be available for taxpayers with incomes over these limits)2.
2008 Tax Returns: Tax credit can be claimed on 2008 federal income tax returns if the home was purchased on or after January 1, 2009. If you have already filed your 2008 return you can file an amended 2008 return or wait until 2009.
