New Homebuyer Credit
Take up to 10% off your purchase price.
By Mary Beth Franklin, Senior Editor
From Kiplinger's Personal Finance magazine, May 2009
Advertisement
If you buy a new home this year before December 1, you may qualify for a tax credit worth 10% of the purchase price, up to $8,000. And you don't have to pay it back as long as you remain in your new home for at least three years. (Qualified buyers who bought a house last year, between April 9 and December 31, are eligible for a tax credit of up to $7,500, but they must repay it over 15 years.)
You can claim the home buyers' tax credit on either your 2008 return (due April 15, or October 15 if you file for an extension) or the 2009 return due next April. Use the revised Form 5405. The tax credit is refundable, meaning it not only reduces your tax bill dollar for dollar, but it can also wipe out your tax liability and result in a refund.
Not everyone is eligible for the full credit, however. The 2008 and 2009 credits begin to phase out for those with adjusted gross incomes of more than $75,000, or $150,000 for married couples filing jointly. You are considered a first-timer if you (and your spouse, if you are married) didn't own a primary residence in the past three years.
See More From the Stimulus Guide
The New Stimulus Tax Credit
This tax break puts up to $400 in your pocket.
New Car Sales-Tax Deduction
Car buyers have till the end of the year to grab this above-the-line deduction.
Better Benefits for the Unemployed
Qualified filers get an extra $25 a week.
Health-Care Subsidy for the Unemployed
Now there's extra help for paying COBRA coverage.
AMT Tax Relief
Taxpayers get a one-year fix on the alternative minimum tax.
College Aid Gets Fresh Funding
Rather than introduce big new ideas, this bill mostly replenishes underfunded programs and increases amounts available to families.
Reader Comments (2)
Posted by: Mike at 04/23/2009 01:26:38 PM
That's the kind of thing I need to have some money down for a house. My wife and I are trying it (to) get a home for 3 years. I'm now starting to see affordability coming to light. I'm afraid I have a setback for qualifying $8k....I have already signed a quit claim deed on my parent's second house but never obtained a mortgage in my name. Does that still consider me as a primary residence on my parent's second house, which I hope not? The quit claim deed was just to help my parents on the taxes through the times of this messing housing bubble. I would like to get started on getting a house as my own with opportunity to alter or expand the house of my dreams. Who or what source should (I) get started (with) to apply for the first homebuyers credit? Recently, a co-worker told me that a lady bought the neighbor's for $112k with just the 1st-time home buyers credit; I believe I have a chance for this. Regards
Posted by: househunting at 05/30/2009 08:42:17 PM
Do i qualify for this credit if only my husbands name is on our current mortgage loan?