First-Time Home Buyers Enjoy Tax Credit
September 20, 2009 by Mark Ellis
Filed under Business
As part of the Obama administration’s commitment to helping every American find a place to live, the government has been offering what essentially boils down to up to $8,000 of free money. Buyers who close by November 30th are eligible for this tax credit, one that is worth up to 10 percent of the home’s purchase price.
Purchasing a home before Nov. 30 is not the only requirement, though. The home you are buying has to be your first home or the first home you have owned in three years. Single buyers must have a modified adjusted gross income (MADI) of less than $75,000, while married couples must have a MADI less than $150,000.
After purchasing a home, an eligible home buyer should claim the credit on his federal income tax return. The credit offsets any taxes that the home buyer might owe and then gets a check for the difference. Home buyers can amend their 2008 tax returns or claim their credit for this year’s returns.
Image: Flickr
