Housing Stimulus Tax Credit Facts
February 27, 2009 by Fred Romano · Leave a Comment
First-Time Home Buyer 2009 Housing Stimulus Legislation Tax Credit Fact Sheet
Who is Eligible
- The $8,000 tax credit is available for first-time home buyers only.
- The law defines a first-time home buyer as a buyer who has not owned a home during the past three years.
- All U.S. citizens who file taxes are eligible to participate in the program.
Types of Homes that Qualify for the Tax Credit
- All homes, whether single-family, townhomes, or condominiums will qualify.
- The home must be used as a principal residence.
- The tax credit also includes newly constructed homes.
Income Limits
- Single or head-of-household taxpayers who earn $75,000 or less are eligible to receive the full $8,000 tax credit.
- Married couples filing jointly who earn $150,000 or less are eligible to receive the full $8,000 tax credit.
- Home buyers who file as single or head-of-household taxpayers can claim a partial credit if their adjusted gross income (AGI) is between $75,001 and $95,000.
- Married couples filing jointly can claim a partial credit if their adjusted gross income (AGI) is between $150,001 and $170,000.
Effective Date For The Tax Credit
- First-time home buyers would receive an $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
- 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 the difference
- Examples: 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. If you are to receive a $1,000 tax refund from the government, your refund would grow to $9,000.
Payback Provisions
- There is NO required repayment of the 2009 tax credit!
- However, if the home is sold within three years of purchase the entire amount of credit is recaptured upon the sale. This applies only to homes purchased in 2009.
Article is courtesy of Brian Taylor of New England Home Mortgage LLC at (860) 426-2447 or (860) 798-7289
Fred is a top listing broker and has been working with for sale by owners for many years. His expertise in leveraging online marketing for a reasonable low flat fee allows sellers to save half the commission or more compared to traditional brokers!
