A Quick Look at Obama’s First Time Home Buyer Tax Credit
n an effort to help stabilize the housing market and our economy, President Obama and the United States Congress recently passed the American Recovery and Reinvestment Act of 2009. The American Recovery and Reinvestment Act has many provisions, including a tax credit for new home buyers.
With this tax credit, qualifying homeowners can receive 10% of the purchase price of the home or $8,000, whichever is greater. Unlike previous tax breaks for homeowners, the First Time Home Buyer Tax Credit does not need to be repaid.
Some Quick Facts About Obama’s First Time Buyers Housing Credit
- The First Time Home Buyer Tax Credit is offered to American Citizens who have not owned a principal residence over the last 3 years. For married couples, both partners are considered, so neither spouse can have owned a primary principal residence over the last 3 years.
- This Tax Credit Does not need to be repaid, which differs from the 2008 first time home buyer tax credit.
- Since the tax credit is refundable, homeowners will receive a check for the total amount of the credit if they do owe any taxes. Otherwise, the tax credit will be used to pay taxes, with the balance returned to the homeowner.
- The First Time Home Buyer Tax Credit provides 10% of the homes value up to $8,000.
- This tax credit is eligible for anyone who purchased a home between January 1, 2009 and December 01, 2009.
- Single taxpayers must have an income of less than $75,000 a year and married taxpayers must have an income of less than $150,000 a year to qualify for the tax credit.
- Obama’s Tax Credit can be used on almost any type of home, including manufactured homes, houseboats, condominiums, attached homes, and detached homes.
- The 2009 First Time Home Buyer Tax Credit can be claimed on a 2008 tax return. Those who have already filed their 2008 taxes can file an amended return, which is usually processed withing 2 to 8 weeks.