FIRST-TIME HOME BUYER
2009 HOUSING STIMULUS LEGISLATION TAX CREDIT FACT SHEET
(Effective for purchases on or after January 1, 2009, and before December 1, 2009)
Who is Eligible
â€¢ The $8,000 tax credit is available for first-time home buyers only.
â€¢ The law defines a first-time home buyer as a buyer who has not owned a home during the past three years.
â€¢ All U.S. citizens who file taxes are eligible to participate in the program.
Types of Homes that Qualify for the Tax Credit
â€¢ All homes, whether single-family, townhomes or condominiums will qualify.
â€¢ However, there are several conditions:
â€“ The home must be used as a principal residence, and the buyer has not owned a home in the prior three years.
â€¢ The Tax Credit includes newly-constructed homes.
â€¢ Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross
â€”income (MAGI) is less than $75,000.
â€¢ For married couples filing a joint return, the income limit doubles to $150,000.
â€¢ Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home
buyer tax credit.
â€¢ Married couples filing jointly who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax
â€¢ The credit is not available for single taxpayers whose MAGI is greater than $95,000 and married couples filing jointly with an MAGI
â€”that exceeds $170,000.
Effective Dates for the Tax Credit
â€¢ First-time home buyers would receive a $8,000 tax credit for the purchase of any home on or after January 1, 2009, and before
December 1, 2009. To qualify, you must actually close on the sale of the home during this period.
Tax Credit is Refundable
â€¢ A refundable credit means that if you pay less than $8,000 in federal income taxes, then the government will write you a check for
â€“ For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $3,000 payment
from the government.
â€“ If you are due to receive a $1,000 tax refund from the government, your refund would grow to $9,000 ($1,000 plus
â€”$8,000 from the home buyer tax credit).
â€¢ If the home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased
Further information regarding the tax credit may be found at http://www.federalhousingtaxcredit.com or http://www.irs.gov.
This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.
Please consult with your tax professional for complete details.
Purchaser (and purchaserâ€™s spouse) may not have owned a principal residence in 3 years previous to purchase. Three-year rule continues to apply. 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.