That didn’t take long. Tax credit forms and rules are now in place for those who want to claim the $8,000 first time homebuyer tax credit, which was part of President Obama’s stimulus bill — aka, the massive $787 billion American Recovery and Reinvestment Act of 2009.
Who is eligible for the $8,000 tax credit?
- First-time homebuyers who have not owned a principal residence for three years prior to purchase.
- The home must be purchased between January 1, 2009 and before December 1, 2009 (special note: the final date is December 1 — not Dec. 31).
- Buyers must make less than $75,000 for singles or $150,000 for couples (higher-income buyers may receive a partial credit).
How can I claim the $8000 tax credit?
- You can claim the tax credit on the 2008 tax returns due April 15 or on the 2009 tax returns next year. Or, if you’ve already completed your tax return, you can file an amended return to claim the credit.
- The claim can be 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
- Claim the tax credit on your federal return by completing IRS form 5405 to determine your tax credit amount, and then claim this amount on Line 69 of your 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary.
Does it have to be repaid?
- No. Unlike the $7,500 tax credit that needed to be refunded under last year’s Housing and Economic Recovery Act, this does not have to be repaid as long as the home is your main home for 36 months after the purchase date.
More information on $8000 tax credit: