Warner Robins, GA (PressExposure) May 16, 2009 -- As a part of the 2009 Stimulus Package, signed into law Feb 19, 2009, 1st Time Home buyers in the United States who purchase a home before Nov 30, 2009 will receive a refundable tax credit of $8,000 when they file their tax return. On May 12, 2009, The U.S. Department of Housing and Urban Development released that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment at closing. Allowing 1st Time Home buyers to use their tax credit at closing is a big improvement and important change for all 1st Time Home buyers thinking about buying a home in 2009.
Note: The following information is intended to provide an overview only - for specific information or individual concern, please contact your lawyer, accountant and/or financial advisor.
Who Qualifies for $8,000 Tax Credit Â· 1st Time home buyers: Haven't owned a home in the past 3 years Â· 1st Time home buyers who purchases a home between Jan 1, 2009 and Nov 30, 2009 Â· Must be used for primary residence for at least 3 years
Who does not qualify for $8,000 Tax Credit Â· Buying a home from a close relative Â· Non resident aliens Â· Anyone who stops using the home as main residence Â· Purchaser's whose gross income exceeds $95,000 (Single) and $170,000 (Married)
Repayment Â· 2009 Tax Credit does not have to be repaid as long as you live in the home for 3 years
Refundable Tax Credit Â· $8,000 Tax Credit is a refundable tax credit Â· Refundable Tax Credit: Tax credits may be characterized as either refundable or non-refundable. Refundable can reduce the tax owed below zero, and result in a net payment to the taxpayer beyond their own payments into the tax system, appearing to be a moderate form of negative income tax. This means you can receive money back.
Limitations Â· Homes can be a Condo, Single Family Residence, Co-op, or townhouse Â· New Construction homes must be occupied by Dec 1, 2009 Â· Vacation, Investment, and Rental homes not eligible Â· Tax Credit equals 10% of purchase price with max of $8,000 Â· Homes less than $80,000 will receive less than $8,000 respectively Â· Purchaser's whose gross income exceeds $75,000 (Single) and $150,000 (Married) will receive a proportionally reduced tax credit as income approaches $95,000 (Single) and $170,000 (Married).
When can someone file to receive his or her $8,000 Tax Credit? Â· 2008 Tax Return Â· Amended 2008 Tax Return Â· 2009 Tax Return Â· Talk to their lender about receiving at closing if getting an FHA loan