“2009 First-Time Home Buyer Tax Credit” in a nutshell

Texas Hill Country Blog

“2009 First-Time Home Buyer Tax Credit” in a nutshell
February 24, 2009

Filed under: Blogroll
, Local Events
— Jeanne Zenner @ 11:08 am

With all of the numbers and programs being bounced around Washington these days, The First-Time Home Buyer Tax Credit seems to be the most well-thought out, easiest to comprehend - and most beneficial to working-class Americans.

A few of the highlights of the 2009 First-Time Home Buyer Tax Credit:

Who is eligible:

The $8,000 tax credit is available for first-time home buyers only OR those who have not owned a PRINCIPAL residence in the past three years prior to purchase.
If you own/ed a vacation home or a rental property, but not your principal residence, you still qualify for this credit.
All U.S. citizens who file taxes are eligible to participate.

Payback provisions:

This is a true credit that does not have to be repaid UNLESS the home owner sells the home within three years after purchase.

Income Limits:

Single or head-of-household:
- the full $8000 credit can be taken if their modified adjusted gross income (MAGI) is less than $75,000.
- a partial credit can be taken if MAGI is between $75,000 and $95,000.
- the credit is not available if MAGI is over $95,000.
Married filing jointly:
- the full $8000 credit can be taken if their modified adjusted gross income (MAGI) is less than $150,000.
- a partial credit can be taken if MAGI is between $150,000 and $170,000.
- the credit is not available if MAGI is over $170,000.

Effective Dates for the Tax Credit:

Closing on the home must take place between January 1 and December 31, 2009.

Additional Information:

The tax credit is refundable.

Examples:

If you qualify for the full $8000 credit:

- If you owe $6000 in income taxes, you will receive a $2000 refund from the IRS. ($8000 tax credit - $6000 taxes due.
- If you are due a $2000 refund, you will receive a total refund of $10,000 refund. ($8000 tax credit + $2000 refund due.)

2. All homes are eligible, provided they will serve as the home buyers primary residence. This includes single-family residential, townhomes, and condominimums.

3. The tax credit can be taken on either the 2008 or 2009 income tax return.

For more details on the tax credit, go to www.federalhousingtaxcredit.com.