U.S. Senate passed the American Recovery and Reinvestment Act of 2009
***Up to a $8000 tax credit to First Time Homebuyers***
The provisions in the bill pertaining to the tax credit for first time home buyers are as follows:
* The $8000 tax credit is available only for first-time home buyers
(Definition of a “first-time home buyer” is a buyer who has not owned a
principal residence during the three-year period prior to the purchase)
* There is a $75,000 adjusted gross income limit for tax filers filing
separate and $150,000 limit for joint return filers.
* The $8000 tax credit is available only for primary residence purchases.
* The tax credit does not require a repayment for most cases.
* The tax credit does have a repayment provision if the homeowner
does not occupy the property for a minimum of 3 years from the
closing date.
* The home buyer must purchase a home between January 1, 2009 and
December 1, 2009.
* The $8000 tax credit is received when you file your tax return.
How does the credit affect the taxes you owe and the refund you get?
The credit reduces your tax liability, that is, the amount of taxes you are required to pay. Depending on your tax withholdings, you could get a bigger refund or owe less in taxes when you file.
