The 2009 First Time Home Buyer Tax Credit. Do You Qualify?

On November 5th the House voted to expand homebuyer tax credit. Stephen Ohlemacher wrote an online article “WASHINGTON – Buying a home is about to get cheaper for a whole new crop of homebuyers — $6,500 cheaper” about this tax credit.

To learn more listen to a podcast from IRS.gov:

First Time Homeowner Tax Credit

If you qualify and are shopping for a home I hope this comes just in time: If you haven’t owned a primary residence for three years and are ready to purchase a principle residence you are a “first time home buyer.”

There are two First Time Home Buyer Credits – 2008 & 2009.  The 2008 tax credit was an interest free loan to first time home buyers that you have to pay back.  The 2009 claim is a credit you don’t have to pay back. The 2009 tax credit is up to 10% of the purchase price of the home for a maximum of $7500.  This applies to houses bought in 2009 as long as it’s purchased before December 1st. In 2009, to get the credit, you have to close on the home by November 30th.  There is an income limitation: People stop qualifying for the credit if their income is over $75, 000 for individuals and $150,000 for couples.

There is something special about the 2009 tax credit. You can claim it on your 2008 taxes or for your 2009 and get the refund now.  Your choice.

Select this link for a Q. A. from IRS.gov: Basic information about program. Homes purchased in 2009.

© 2010 W. S. Hughes

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