First Time Home Buyer Tax Credit
The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers
purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
This program is applicable for:
- First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit.
- First time buyers include anyone who has not owned a principal residence in the three years prior to the purchase.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
- The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return.
- Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return.
- Any home that will be used as a principal residence will qualify for the credit.
- See more details at the »Federal first-time home buyer taxcredit site«.
Use your tax credit as a down payment
First-time buyers using FHA approved lenders can get an advance on their anticipated tax credit to apply toward the down payment and closing costs of their home.
