First-time Home Buyer Credit

If you are planning to purchase a home, you may be eligible for the first-time home buyer credit once you file your income tax returns. This tax break is offered by the provisions of The American Recovery and Reinvestment Act and the Workers, Homeownership and Business Assistance Act. Eligible taxpayers can obtain up to 10% of the total amount of the purchased home.

Features of the Tax Credit

The first-time home buyer credit has a few important criteria, some of these are:

  • Homebuyers can get up to $8,000 in a tax credit for a home between $80,000 to $800,000.

  • Taxpayers without IRS debt will receive the credit when their refunds they are due.

  • A homebuyer can only claim the credit after the home purchase is completely processed.

  • The taxpayer must pay the money back if they do not live in the home for a minimum of 3 consecutive years, from the date the house was purchased.

  • On November 2009, the credit was extended to include long-time homeowners who wish to purchase a new primary home.
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