Here is the short version of the $8000 tax credit
- Buy a home between January 1, 2009 and December 1, 2009.
- Get $8,000 Federal Tax Credit when you file your 2009 Tax Return (or sooner, see below).
- This does not have to be repaid. (UNLESS: You sell the home within 3 years)
- If you and your spouse make a combined income of less than $150,000 annually, or if you are single and make less than $75,000 annually, you qualify for the full $8,000 tax credit. If your income is higher, you may qualify for a partial tax credit.
- You may not have owned a home during the past 3 years to qualify. If you're married, your spouse can't have owned a home either.
- The credit is 10% of the purchase price of the home, up to $8,000 . If you buy a home with a purchase price of at least $80,000, you get the full $8,000 credit.
- The tax credit is refundable. That means that if you owe no taxes, you can choose to have the government send you the $8,000 as a refund.
- You can elect to claim the tax credit on your 2008 return , meaning you can get the credit this year, even though you didn't buy the home until 2009. This may be helpful to those who know that they will make more than $150,000 combined in 2009.
- If you closed on a home early in 2009 and have already filed your 2008 return, you can submit an amended return.
- If you bought your home between April 9, 2008 and December 31, 2008, you cannot claim the $8,000 tax credit that does not have to be repaid. You can still claim the $7,500 tax credit that has to be repaid over 15 years.
While you are at the NAHB site, you can check out other links that will take you to explanations of other provisions of the stimulous package. This is a great resource for getting some answers to your other questions about the stimulous plan.
For purposes of the tax credit, a first time homebuyer is someone who has not owned a home for three years from the date of closing on a new home . If you or anyone you know would qualify, and be in a position to take advantage of this incentive, it is an absoluutly FABULOUS gift of $8000 that may never come your way again! If you don't owe $8000 in income tax, you will get a check from the government with no restrictions on what you do with it, and no requirement to pay it back.