IRSTax Credit

IRS Tax Credit Info

A reputable tax attorney confirms this is a dollar for dollar credit and if you already bought in 2009 you can amend your 2008 return to get the check this year instead of next. Also this tax credit does not have to be paid back if you keep the home for 36 months.

New Stimulus Package
First Time Home Buyer $8000 tax credit

Here are the parameters for the tax credit:

The Tax Credit is for home buyers (either spouse if filing jointly) who have NOT owned a principle residence during the three-year period prior to the purchase. Ownership of vacation property or rental property does not disqualify home buyers from this program.

The maximum credit is $8000 or 10% of the home purchase, whichever is less.

The credit is available for homes purchased on or after Jan 1, 2009 and before Dec 1, 2009.

To qualify for the full tax credit, married couples' modified adjusted gross income (MAGI) should be under $150,000 and single filers' MAGI should be less than $75,000. Partial tax credits may be available for married couples with MAGI incomes of over $150,000 but under $170,000 and single filers with incomes over $75,000 but under $95,000. If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.

Home buyers who qualify for this program, but who do not intend to purchase a home till the end of 2009, may elect to alter their tax wit holdings (up to the amount of the tax credit) in order to save up money for a down payment. However, if the purchase of the home does not occur, the taxes must be repaid to the IRS.

There is no recapture or repayment clause IF the home is owned for at least 36 months.

The law allows taxpayers to elect to treat qualified 2009 purchases as a 2008 purchase so that they can receive the tax credit on their 2008 tax returns.