What is a tax credit?
- Incentive for first time home buyers.
- Applies to home purchases for use as a principle residence of $80,000 and up between now and 12/1/2009 (for homes under $80,000 the credit would be 10% of the purchase price)
Who is eligible?
- 1st time homebuyers (any person who has not owned or purchased a home in the 3 years prior to the day of purchase)
How does it work?
- Every dollar of a tax credit reduces income taxes by $1 In other words the tax is directly applied against the total tax owed.
Is there an income restriction?
- Yes, for those filing form 1040 as single or head of household the income cannot exceed $75,000. Married couples who file jointly may have income of no more than $150,000.
What is a principal residence?
- Generally it is the home wherean individual resides at least 50% of the time.
Are there property location restrictions?
- Yes, the home must be located in the United States.
Do I have to repay the 2009 Tax Credit?
- No. There is no repayment for 2009 tax credits.
