At a glance:
Ø The tax credit is for first-time home buyers only.
Ø The tax credit does not have to be repaid.
Ø The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
Ø The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009 for your primary residence..
Ø Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
Who is eligible? Anyone who has not owned a home in the past 36 months is considered to be a first time home buyer.
Are there any income limits to receive the credit? Yes. For single taxpayers, you may receive the full credit if your modified gross adjusted income is $75,000 or below and $150,000 for married couples filing jointly.
How do I claim the credit? First, complete IRS Form 5405 to determine your credit amount. Then use this number on line 69 of your Form 1040. If you have filed for 2008 already, you can file an amended return and receive the credit with your 2008 return, even if you have already received it. You should consult a tax professional for this. Or you can elect to receive the credit on your 2009 Tax Return as well.