First Time Home Buyer Tax Credit- $8,000

IRS Tax Form for 2009 Stimulus Credit, Rules to Qualify

Oct 29, 2009

Many individuals have unanswered questions regarding Obama's Economic Stimulus Rebate for first time home buyers.

Many individuals perked up once they heard of the first time home buyer tax credit amount. Yes, it is true; individuals residing in the United States who are purchasing a home during the year of 2009 may qualify for an $8,000 tax credit. However, there are some rules to qualifying for this home buyer credit.

First Time Home Buyer Tax Credit Rules to Qualify

Some individuals are confused by the first time home buyer tax credit, as the information can be some what misleading. Many have some unanswered questions regarding the first time home buyer stimulus.

Is the First Time Home Buyer Tax Credit Really a Loan?

Individual’s filing for the 2009 first time home buyer credit must have purchased their homes between Jan. 1, 2009 and Nov. 30, 2009. The home owner will only have to pay back the $8000 if the person has lived in their home for less than three years.

First Time Home Buyer Tax Credit Amount

First time home buyers can claim a credit of either $8,000 or 10% of the home’s value, depending on whichever one is less. It’s possible for individuals to claim the credit on either their 2008 or 2009 tax return. For those who have already filed their 2008 tax return, they may simply file an amendment in order to claim their first time home buyer credit.

What Are the Rules to Getting the First Time Home Buyer Tax Credit?

In order to qualify, the home owner must not have owned a home for the last three years. Therefore individuals technically do not have to be first time home buyers. The qualification depends on the past three years.

Who Does Not Qualify for the First Time Home Buyer Stimulus?

Those that have an annual income of more than $75k as a single person will not qualify. Couples who earn more than $150k annually will also not qualify for the full amount.

First time home buyers are not only saving money on homes, due to the drop in the economy, they are also getting a great financial start, due to qualifying for the first time home buyer tax credit. For those individuals in the United States who have purchased a home this year (2009), it’s best to read all of the rules to the home buyer stimulus, in order to file for the $8,000 credit.

The copyright of the article First Time Home Buyer Tax Credit- $8,000 in First Time Home Buyers is owned by Emily Rogers. Permission to republish First Time Home Buyer Tax Credit- $8,000 in print or online must be granted by the author in writing.