How to Get the First Time Homebuyer Tax Credit

by wildcherry on Friday, October 30th, 2009 | Life, Tips

Here’s some info to get the first time homebuyer tax credit:

A first time home buyer is that person who has not owned a home for the past three years preceding the purchase of a home. This applies to married couples as well. This is to say that if your spouse has owned a home previously in the past three years, then you do not qualify as a first-time home buyer.
The amount for which a first time home buyer can qualify is simply 10% of the value of the home to be bought and it does not exceed $8000. There are also some other criteria that are put into consideration to determine whether one will be approved for the tax income. This is the income level. Single persons must not be earning more than $75,000 while the limit for married persons is $150,000.
You have to be intending to live in the house you buy to qualify for this credit and have to buy said residence between January 1, 2009 and December 1, 2009.
There are income limits to this tax credit. If you earn more than 75,000 a year for singles or 150,000 a year for couples, you cannot qualify for the full credit. There is some leeway of 20,000 for people who earn a bit more than the above amounts and you may qualify for
The credit must be paid back, but you have 15 years to do so. In the meantime, it will not be accruing any interest charges or late fees. a partial credit if this is your case.
To apply for the tax credit, you should fill out an IRS form 5405. The amount you qualify for will then be determined and you can claim for it on line 69, which is part and parcel of the tax form. This is the only form you will be required to fill and as you do so, you must be sure that the purchase is complete, otherwise you will be disqualified.

Related posts: