Great reat news for Tri-Valley home buyers. The economic stimilus bill includes a tax credit of $8,000 or 10% of the home’s value, whichever is less. Homebuyers can claim this credit on their 2008 or 2009 taxes!
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if the total tax bill – the amount of withholding they paid during the year plus anything extra they had to pony up when they filed their returns – was less than that amount.
To qualify for the credit, the purchase must be made between January 1, 2009 and November 30, 2009. You must not have owned a home for the past three years to qualify as a “first time” buyer. You must also live in the house for at least three years, or you will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, you must make less than $75,000 as a single or $150,000 as a couple. (If you are a higher-income buyer you may receive a partial credit).
Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. If you have already completed your return you can file an amended return for 2008 to claim the credit.