First Time Home Buyer Tax Credit

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

Here is the $8,000 Home Buyer Tax Credit at a Glance:

• The tax credit is for first-time home buyers or buyers who have not owned a principal residence for 3 years prior to the purchase
• The tax credit does not have to be repaid, unlike the previous tax credit in 2008.
• The tax credit is refundable, so you can claim the credit whether you have offsetting tax liability or not.
• You may claim the tax credit on your 2008 tax return to get your money sooner.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000
• The credit is available for homes purchased (closed and transferred) on or after January 1, 2009 and before December 1, 2009
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Partial credits are available for those who exceed these income limits.

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