Now, I know that a lot of individuals are wondering about the specifics of the First Time Home Buyer’s Refundable Credit for Tax Year 2009. This is the very first time the credit has been deemed refundable.  President Obama signed his first major bill on Tuesday, February 17, 2009. This is just one of the many components of his Economic Stimulus Plan. Interested?……..Okay, this is where it get’s interesting. You are allowed to claim the up to 10% of the home’s value that you are purchasing or the $8,000 credit. Of course, you are allowed to use the one that is less,     ! Did you really think you would be able to use the one that was most beneficial? Not in this time! ! It’s just not possible. The economy really would not be able to withstand it!

Now, let’s back up a minute. Let’s make sure you even qualify for this credit.

• You CANNOT HAVE owned a home within the last 3 years.
• You MUST purchase the home on or after January 1, 2009, but before November 30, 2009.
• Single Home Buyer’s Income CANNOT exceed $75,000.
• Married Couple’s Income CANNOT exceed $150,000.
• OH, be prepared to live in it for a minimum of 3 years, because you WILL have to pay the money back you were refunded if you move before 3 years.
  

Now, if you happen to exceed income limits single or married while trying to purchase a home, you may still receive a partial credit! Again, this credit is refundable! So, that means that you will get your credit amount in addition to your regular refund. Now, if you have a tax liability and owe taxes, your credit amount will go towards your tax liability and you will be refunded the remainder. So, you won’t have to write any additional checks out to the IRS!!!

This is very helpful for those of you that CAN meet credit requirements or even come up with the down payment to get in the home. The reality is that soooo many jobs have been lost, late payments have been made, retirement savings have slowly been diminishing, on and on and on that it’s nearly impossible for most Americans to qualify or keep what they already have. It will take longer than November 2009 to reap a benefit of this credit. What about some money being pushed into Immediate Credit Reform or something? or How about introducing this credit when it’s realistic for more Americans!

Feel free to leave questions about tax situations in discussions and I will assist you to the best of my knowledge or if you need examples. You can also login on the front page using your email address and I will discuss with you personally!

PIC SOURCE/SOURCE

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