Right now, an $8,000 tax credit is being offered by the government to enable aspiring homeowners to buy their first home.1
If you are eligible, the tax credit can help ease the financial transition from renting to owning. It can assist with buying furniture and home-décor; making home improvements – like remodeling, landscaping and painting; or paying down debt as you adjust to new monthly expenses. Homes purchased between January 1, 2009 and December 1, 2009 are eligible.
The tax credit is part of the American Recovery and Reinvestment Act of 2009, signed into law on February 17, 2009, and enacted to help stabilize the housing market and strengthen our overall economy. Are you eligible for the tax credit?
The tax credit is designated for first-time home buyers.2 A first-time home buyer is defined as a buyer who has not owned a home in the last three years.
The tax credit is equal to ten percent of the home purchase price, which is capped at $8,000. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Single taxpayers with incomes between $75,000 and $95,000, and married couples with incomes between $150,000 and $170,000 qualify for partial credit.
All homes purchased between January 1, 2009 and December 1, 2009 including single-family, townhomes, or condominiums will qualify for the tax credit, provided that the home is used as the principal residence. This also includes new construction homes if occupied by December 1, 2009.
To learn more about obtaining the tax credit and repayment, visit the Frequently Asked Questions.
For further information about eligibility requirements and limitations, visit www.irs.gov.
1. Consult a tax advisor regarding your individual situation. This information is not intended to provide legal advice, tax advice, accounting services, or investment advice, nor should it be relied on for legal advice. Please seek the advice of your own legal counsel.
2. Not available for those who qualify for a similar tax credit in the District of Columbia, or for those who finance their home purchase under a mortgage revenue bond program.