| Tax Credit for 1st Time Home buyers |
First-Time Homebuyer Tax Credit up to $8,000
On February 17, 2009, President Barack Obama signed into law the American Recovery and Reinvestment Act of
2009, which includes a tax credit for qualifying taxpayers who are first-time homebuyers. Some of the tax credit
details are:
1.You must be a first-time homebuyer purchasing a principal residence or a buyer who has not owned a
principal residence in the three years prior to the purchase date.
2.The tax credit does not have to be repaid if the home remains your main residence for 36 months from the
purchase date.
3.You must purchase a home between Jan 1, 2009 and November 30, 2009 to qualify.
4.You can claim a tax credit of 10% of the purchase price up to $8,000, or $4,000 for married individuals
filing separately.
5.The amount of the credit phases out for taxpayers whose adjusted gross income is more than $75,000, or
$150,000 for joint filers.
6.You can even claim the credit on your 2008 return by filing a tax ammendment with your tax preparer.
The 2009 tax credit for first-time homebuyers described above differs from the prior enacted tax credit in 2008.
The new law expands the maximum credit from $7,500 to $8,000, and eliminates repayment of the credit for
taxpayers who keep the home as their principal residence for 36 months.
In addition to the Federal tax credit, some states may offer additional tax credits for first-time homebuyers. Make
sure you check with your state government to determine if you qualify for additional tax credits.
More information on the First -Time Homebuyer Tax Credit, including FAQs and a video interview, is available on
www.federalhousingtaxcredit.com.
Disclaimer: The information provided above is a brief overview of the First-Time Homebuyer Tax Credit as defined in the American
Recovery and Reinvestment Act of 2009. For more detailed information on the First-Time Homebuyer Tax Credit, please visit
www.irs.gov. Contact a professional tax consultant for more information on how the tax credit applies to your circumstances and
filing status.
On February 17, 2009, President Barack Obama signed into law the American Recovery and Reinvestment Act of
2009, which includes a tax credit for qualifying taxpayers who are first-time homebuyers. Some of the tax credit
details are:
1.You must be a first-time homebuyer purchasing a principal residence or a buyer who has not owned a
principal residence in the three years prior to the purchase date.
2.The tax credit does not have to be repaid if the home remains your main residence for 36 months from the
purchase date.
3.You must purchase a home between Jan 1, 2009 and November 30, 2009 to qualify.
4.You can claim a tax credit of 10% of the purchase price up to $8,000, or $4,000 for married individuals
filing separately.
5.The amount of the credit phases out for taxpayers whose adjusted gross income is more than $75,000, or
$150,000 for joint filers.
6.You can even claim the credit on your 2008 return by filing a tax ammendment with your tax preparer.
The 2009 tax credit for first-time homebuyers described above differs from the prior enacted tax credit in 2008.
The new law expands the maximum credit from $7,500 to $8,000, and eliminates repayment of the credit for
taxpayers who keep the home as their principal residence for 36 months.
In addition to the Federal tax credit, some states may offer additional tax credits for first-time homebuyers. Make
sure you check with your state government to determine if you qualify for additional tax credits.
More information on the First -Time Homebuyer Tax Credit, including FAQs and a video interview, is available on
www.federalhousingtaxcredit.com.
Disclaimer: The information provided above is a brief overview of the First-Time Homebuyer Tax Credit as defined in the American
Recovery and Reinvestment Act of 2009. For more detailed information on the First-Time Homebuyer Tax Credit, please visit
www.irs.gov. Contact a professional tax consultant for more information on how the tax credit applies to your circumstances and
filing status.
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