Information concerning the first time homebuyer tax credit.

This is now in effect starting January 1, 2009 thru December 1, 2009. The homebuyer can not have owned a home in the last 3 years to qualify. The tax credit changed from $7500 to $8000 for first time home buyers. Also, the credit no longer needs to be paid back over a  15 year period as long as the homeowner lives in the home at least 3 years without selling it. The income limitations are $75,000 for a single homeowner or $150,000 for married tax payers.

“This means that first-time home buyers who owe less than $8,000 in taxes for the year are still eligible for the full $8,000 credit when they file their tax returns, and the IRS will write them a check for the difference between $8,000 and their actual tax bill,” Nicholas said. “In fact, the credit can be claimed on your 2008 tax returns that you file by April 15 of this year, even if you buy the home in 2009.”

If you bought in 2008, the credit is still for $7500 and still must be paid back over a 15 year period.

For more information, visit http://www.federalhousingtaxcredit.com.

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