Facts on the $8,000 Tax Credit
Posted by Rebecca
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Who Gets It?
First-time buyers who close on a home between Jan 1, 2009 and Dec. 1, 2009. You are a first-time buyer if you haven’t owned your own home in the last three years.
- What Are the Income Limits?
Single buyers must have an income of $75,000 or less, and married couples can have an income of up to $150,000 to qualify for the full credit.
- Will I Get the Full $8,000 Credit?
If you meet the above listed requirements, you’ll get a credit for 10% of the purchase price of your new home, with a maximum of $8,000. So, if your home costs $80,000 or more, you’ll get the full $8,000 credit
- How Does it Work?
It’s refundable and doesn’t have to be paid back, so let’s say you owe $2,000 on your taxes. You’ll pay nothing and get $6,000 check from the government.
- How Do I Get It?
You simply claim the credit on your federal income tax return.
- What Should I Look Out For?
If you’re still looking to buy a home in time to get the credit, make sure you go under contract at least 60 days before the Dec 1st deadline just to be safe. With the great interest rates we’ve had and new government regulations, loans have been taking 30-60 days to close.
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