| The information below pertains to the American | | | | To claim tax credit you need to claim it on federal |
| Recovery and Reinvestment Act of 2009 – Fist | | | | income tax return. Homebuyers have to complete IRS |
| Time Home Buyer Tax Credit: | | | | form 5405 to determine their tax credit amount and |
| $8,000 tax credit is only for the first time home buyers | | | | then claim this amount on line 67 of the 1040 income |
| (IRS defines a first-time home buyer as someone who | | | | tax form for 2009 returns. No other application or |
| has not owned a principal residence during the | | | | forms are required, and no pre-approval is necessary. |
| three-year period prior to the purchase). | | | | You will not qualify for home buyer tax credit if you |
| First time buyer can purchase any kind of housing | | | | purchase a home from your ancestors, children, |
| (single family home, town house, condominium, mobile | | | | grandchildren or your spouse. |
| home and even houseboat), but the purchase must | | | | The home tax credit is refundable meaning credit can |
| occur on or after January 1, 2009 and before | | | | be claimed even if the taxpayer has little or no federal |
| December 1, 2009; the purchase date = the day when | | | | income tax liability to offset. |
| closing happens. | | | | You can access the money allocable to the tax credit |
| There are income limits to qualify for the tax credit. | | | | before 2009 tax returns. Potential home buyers who |
| The limits are $75,000 for single taxpayer and | | | | belive they meet the criteria for the tax credit are |
| $150,000 for married taxpayers filling a joint return. | | | | allowed to reduce their income tax withholding up to |
| The tax credit does not have to be repaid back; | | | | the amount of credit. However buyers should adjust |
| however home buyers must use their home as a | | | | their withholding amount on their W-4. |
| principal residence for at least three years. | | | | |