$8000 First-Time Homebuyers Tax Credit

The Economic Stimulus Bill signed by President Obama offers first-time homebuyers a tax credit equal to 10% of the cost of their home up to $8,000.   Learn how you can take advantage of the tax credit and buy the home of your dreams!

What are the dates the tax credit must be used?                                           
The tax credit will apply to homes purchased between January 1, 2009 and November 30, 2009. 

Who is eligible?                                                                                                 
This tax credit is available to first-time homebuyers who purchase a home in the United States as their primary residence.  You cannot have owned a home in the past three years from the date of your home purchase.

Are there income limits to qualify?                                                                   
To quality for the full amount of the tax credit, you must earn no more than $75,000 if filing as Single or Head of Household. If filing a joint return, the buyers may have a combined income of no more than $150,000.

Can the tax credit be used as downpayment for my new home?
As of May 29, 2009, HUD will allow buyers to apply their anticipated tax credit towards their downpayment and closing cost.

How much can I receive?
First-time homebuyers will receive 10% of the purchase price up to a maximum of $8000 for single resident or a married couple filing jointly.

How will I receive this tax credit?                                                                     
Once you close on your new home you would need to have your current tax return amended for the current year claiming the tax credit.  If you do not owe the IRS you will receive a full refund of $8000.

Do I have to repay the $8000?                                                                          
No, the tax credit is not a loan; it’s a true tax credit.  Repayment is not required unless you sell your home within three years of purchase. 

What type of home qualifies for the tax credit?                                             
Only homes used as your primary residence will qualify for the tax credit.  No vacation homes, second homes, or rental properties are eligible.

Learn More
This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with your tax professional for complete details.

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