Among the various tax breaks in the 2009 economic stimulus package, fist-time homebuyers are offered an increased tax credit of up to $8000. Now the IRS has released some details on this credit and even sweetened the deal significantly.
The IRS announced Feb. 25, that taxpayers who qualify for the first-time homebuyer credit and purchase a home before Dec. 1, 2009 will be given a special option allowing them to claim the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
"For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman in a press release. "This important change gives qualifying homebuyers cash they do not have to pay back."
The tax credit, available to qualified tax payers who buy their homes before Dec. 1, 2009, can go as high as $8,000, or $4,000 for married taxpayers filing jointly.
The credit begins to “phase out” or decrease for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
What is a "First-time" Home Buyer? “For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase,” added the IRS.
Also See:
The Economic Stimulus Package -- How it Could Affect You
Helping Workers Impacted by the Recession
Helping Seniors, Disabled Veterans, and SSI Recipients
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