Did You Know: The Details of the 2009 First Time Home Buyers $8,000 Tax Credit / Refund?

The Stimulus package made several important changes in this program.

1. First time homebuyers (who did not own a principal residence in the three years before closing) are eligible.

2. Income taxes are reduced by 10% of the cost of the buyer's ownership interest in the home or $8,000, whichever is more, subject to conditions below.

3. This is a "refundable tax credit" - so if tax liability is less than the tax credit, the buyer will get a tax refund for the difference.

4. The tax credit is reduced as income increases beyond $75,000 for individuals or $150,000 for a married couples.

5. This applies to buying a partial interest in a home owned by others. For example, if Lucky Lee MyChild moves from their apartment after marry Mr. (Mrs.) Already A. Homeowner and purchases a half-interest in the home, they may be eligible for the tax credit.

6. In 2010, the $7,500 non-refundable, payback, tax credit program returns for first time homebuyers.


For more information see IRS form 5045 or email Ken Friedman