Home Buyer: Tax Credit

The American Recovery and Reinvestment Act of 2009 was signed into law by President Obama on February 17, 2009.

1. It's a refundable tax credit that's lesser of 10% of cost of the home or $8,000. So as long as you buy a home over $80,000, you can qualify for the full $8,000 refundable tax credit.
2. The income restrictions still apply. The full amount of the credit is available for individuals that make no more that $75,000 ($150,000 on a joint return). The credit phases out above those caps ($95,000 for singles and $170, 000 for joint returns). This means if you make in between these amounts ($75,000 - $95,000 for individuals and $150,000 - $170,000 for joint filers), you can still qualify for a partial credit.
3. You do not pay this $8,000 back unless you sell the home within three years from your purchase date.
4. This credit applies to first time homebuyers only. The government's definition of a first time homebuyer is someone who has not owned a principal residence in three years prior to purchase.
5. The time frame is retroactive to January 1st, 2009 and goes through to December 1st, 2009. You must close on a home before December 1st, 2009 to receive the credit.
6. If you close on your home after you file your taxes, you can file an amendment to your 2008 tax return so that you can receive the check AFTER you file that amendment. Contact your tax professional to assist you with filing your amendment or for specific questions in regards to any of the above information. Further information can be obtained by contacting the IRS or the tax professional of your choice directly.

*For further information consult your tax professional or contact the IRS directly.