Wednesday, February 25, 2009

$8K Tax Credit for 2009 First-Time Homebuyers: Revised

The up to $8K tax credit that passed with President Obama's American Recovery and Reinvestment Act just got better.

Those who purchase a home between January 1 and December 31, 2009, meet income caps ($75K for an individual, $150K for married couple) and haven't owned a home in the past three years, may now claim the tax credit on either their 2008 (filed April 2009) or 2009 (filed April 2010) return.

This means the benefit may be "immediate," instead of more than a year away. This tax credit does not have to be repaid, unlike the 2008 / $7,500 version.

See the Treasury announcement, and the IRS announcement.

The IRS website will also have FAQ's on how you can get the tax credit for 2008 if you don't close on a house until, say, July. Short answer: amend your return after April 15 by filing another form. Long answer: contact your tax professional.

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