$8,000 Federal Tax Credit for New HomeownersWhat is the time frame to buy? By December 1, 2009 (close on the sale by that date). Who qualifies as a first-time home buyer? A buyer who has not owned a home for three years. What about a married first-time buyer? Both buyers cannot have owned a home for three years. How do I claim the tax credit? Claim the tax credit on your federal income tax return. What are the credit limits? Single $75,000, Married $150,000. Does buying a new home qualify? Yes, but the settlement day has to be before Dec. 1, 2009. What about uilding a custom home? You qualify, but again, you have to occupy the home by Dec. 1, 2009. Do I have to pay back the tax credit? You are not required to repay except for certain conditions. How do I access the tax credit now? Change your withholding numbers. What about loan credit? State housing finance agencies help buyers at closing by advancing the credit amount as a loan. What about persons with incomes above the limits? Single $75,000 - $95,000 and Married $150,000 - $170,000 are eligible to receive a partial tax credit. What is the maximum income that can qualify? Single $95,000 and Married $170,000 exceeds the modified adjusted gross income. Is the tax credit refundable? If you pay less that $8,000 in federal income taxes, the government will write you a check for the difference. - Example 1: You owe $6,000 in taxes, you would receive $2,000. - Example 2: You have a credit due of $500, you would receive $8,500 |