Julie,

You should be able to get all the answers you need at,

http://www.federalhousingtaxcredit.com/2009/index.html

go to http://www.tripletdadrealtor.com and in one of my blogs it has all the questions and answers on the tax credit. I hope this helps.

Julie, the best people to explain it to you is the outfit that decides who qualifies and does the enforcing.
Plus they have a # where you can contact them to ask any question you have.

The IRS.... http://www.irs.gov/newsroom/article/0,,id=206291,00.html

http://www.irs.gov/newsroom/article/0,,id=206293,00.html

http://www.irs.gov/newsroom/article/0,,id=206294,00.html

http://www.irs.gov/pub/irs-pdf/f5405.pdf

They explain it fairly well, Dunes

The First Time Buyers form 5405 is used to calculate what you are entitled to receive for the credit-you must qualify for the credit (not owned a home in the past three years etc.) The credit is based on the selling price of the home not what you are financing. A calculation is done on this form (if you qualify and your home was $150K then you would qualify for $8000). If you want to file this on your 2008 taxes to get your money sooner you will have to amend them. The form is a 1040X- it is mailed to the IRS- the process will take about 6-8 weeks. If you have something attached to your tax refund (child support, student loan, back taxes) then this debt will be paid off first before you receive any money.

Hi Julie,

Go to http://www.tripletdadrealtor.com and I wrote a Q & A blog a few weeks ago. It should be able to answer all your questions. I also have a lender who will be more than happy to answer all your specific questions.

Hi Julie,

I actually just saw your question. I wrote a great easy to understand article on the $8000 tax credit. Feel free to read it at http://www.reneeporsia.com. It's in my blog.

I hope it helps.

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com

Julie -- I have broken down this tax credit that is filled with government jargon and put it in plain English. It is posted on my blog. Go to my website http://www.JoycePoole.com, then at the top right, click on my blog. I think you'll like this description.

Hi Julie,
Thank you for your important question. Not only will the answers help you, they will also help other people wondering the same thing.

This $8000 tax credit couldn't have come at a better time. With the market being what it is and loans being harder to obtain, first time homebuyers need all the help they can get.

Please go to my real estate blog at
http://activerain.com/blogsview/943967/Concord-NC-First-Time…
to read up on all the info about the credit.

Also, please feel free to go to my web site at
http://www.TonyOreficeRealEstate.com
for more real estate info pertaining to Concord, Huntersville, Cornelius, Harrisburg, and N. Charlotte NC.

I hope this info has been helpful. : )

Yes, watch these 2 videos and let me know if you have more questions. They are quick and should help you out. Hope this helps!

http://www.youtube.com/watch?v=cH10MKVoOiM&feature=chann…

http://www.youtube.com/watch?v=o_MYBgYqQ1w&feature=channel

jessicariffle@seacoastrealty.com

$8,000 Home Buyer Tax Credit at a Glance
The tax credit is for first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
FREQUENTLY ASKED QUESTIONS
1. Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
2. What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
3. How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4. Are there any income limits for claiming the tax credit?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
5. What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phase out limits.
7. Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase out to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
See http://www.federalhousing.com for more questios and answers or visit my website at http://www.RealEstatefromLisa.com

Lisa Thompson
Realtor, ABR, e-PRO
843-270-2221 http://www.RealEstatefromLisa.com