• The First-Time Home Buyer Tax Credit is an $8,000 REFUNDABLE Tax Credit (restricted to 10% of the purchase price of the home)

• If the property to purchase is  $65,000, the credit is only $6,500. (All properties over $80,000 qualify for the entire $8,000).

• Refundable means that if you owe a total tax amount less than $8,000 the IRS will send a refund for the balance.  Owe zero tax and receive $8,000 refund.  If you are to get a refund you can add the $8,000 on top of that.  If you are to pay tax then subtract that for your balance.  (Check with your CPA or tax advisor/preparer.  I am not giving you tax advice).

• It can be claimed on your 2008 Tax Return (filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return.

Leave a Reply

You must be logged in to post a comment.