Do You Qualify for the $8,000 First-Time Home Buyers Tax Credit?It’s easier than you might think……but time’s running out!
Yes. It’s true. If you are qualified and close on a new home on or before November 30, 2009, you can receive a dollar-for-dollar reduction in what you owe on your 2009 tax return. That means if you owe $8,000 in income taxes you will receive an $8,000 tax credit and owe nothing to the IRS. If you owe $4,000 on your 2009 tax returns, then you’ll get a credit for $4,000 and a $4,000 check from the Federal Government for the difference. This money does not have to be repaid.
How do I qualify?
There are two qualifying factors:
- You qualify if you are a first time home buyer or if you haven’t owned a principal residence during the past three years.
- You qualify as a married couple filing jointly if your modified adjusted gross income (MAGI) is less than $150,000. If you are a single person, your modified adjusted gross income (MAGI) must be less than $75,000. A partial tax credit is available for individuals earning between $75,000 and couples earning between $150,000 and $170,000.
What type of home qualifies?
Any home that is used as a principal residence will qualify for the credit. This includes single-family detached and attached homes, manufactured homes and even houseboats.
How do I claim the Tax Credit?
All you have to do is claim the tax credit on your 2009 income tax return by completing IRS Form 5405 to determine your tax credit amount and then claiming it on Line 69 of your 1040 tax return. No other applications or forms are required.
With mortgage interest rates and housing prices at record lows – coupled with the $8,000 tax rebate – this is a golden opportunity for first time buyers to enjoy the benefits of home ownership. But you have to act now. This tax credit is only available for homes closed on or before November 30th. That’s just four months away!
If you’re in the Dallas-Fort Worth area and want to find out more about how you can use the $8,000 tax credit, because not all home builders know how to make this work for you. But Landon Homes, rated one of the best new home builders in Dallas, does and their homes qualify.