First-Time Home Buyer Tax Credit extended to

Military Personnel until December 2010!

  

  

As part of its plan to stimulate the US Housing Market & address the Ecomonic challenges facing our nation, Congress has passed legislation that grants a Tax Credit of up to $8000 to First-Time Home Buyers which has been extended for Military Personnel.

 

What is the Definition of Military Personnel?

Those members of the Military, Foreign Service, and Intelligence Corps who served at least three months of qualified overseas duty in 2009.

By extending the First-Time Homebuyer Tax Credit for Service Members Overseas, we give these families more time to utilize the benefit, while also helping our economy continue its recovery.

 

Housing Stimulus – Can you really get $8,000?

There have been a lot of questions about the recently passed Economic Stimulus Package. By far the most popular question is “What the heck does it all mean?”

 

It means that people who qualify as First-Time Buyers (those who have not owned a Home for the last 3 years) and make under $75,000 if single and $150,000 if married qualify to receive a CREDIT on your 2009 return which can actually put money back in your pocket. How about buyers who buy a home and want to make improvements? It looks like you will have some money available to fence in your backyard or update the kitchen rather than waiting a year or more to save up the money. The provisions allow a buyer to adjust their withholding on their paycheck to have access to their credit money before filing their 2009 taxes.

 

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?  Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

 

10 Things about the 2009 First Time Homebuyer Tax Credit:

  1. You don’t actually have to be a First-Time Homebuyer
  2. You qualify as a First-Time Buyer if you have not owned a home in the last 3 years AND your spouse has not owned a home in the last 3 years. You are considered a First-Time Buyer if you sold a home have been renting for the past 3+ years.
  3. The credit is 10% of the purchase price of a primary residence up to $8,000.
  4. You will get the money back even if you don’t have $8,000 in tax liability for 2009. The IRS is allowing it in full or in part to be refunded after you file your taxes.
  5. The $8,000 in credit is the equivalent of making approximately $12,000 in gross income this year. (How many months of income is that for you?)
  6. Many uses for your credit – pay off revolving debt, rebuild your savings, invest in the local economy by buying local products or services, or improve your new home.
  7. If you receive the credit you have to stay in your home for at least 3 years or you have to repay your credit. This provision was added to keep housing speculators from using the credit.
  8. The credit is available for purchases between January 1, 2009 and November 30, 2009.  So, if you already bought in 2009 – you didn’t miss out!
  9. No special forms are required – just proof that you purchased during the time period and be sure you also meet the income and first-time buyer qualifications.
  10. As long as it’s a primary residence, you can buy a condo, townhome, patio home or single family home.

For More Information Be Sure To Check out our TAB – Federal Hsg Tax Info for additional information.