Tax Credit of Up to $8,000 for First-time Home Buyers.
If you purchased a primary residence in 2009 before December 1, 2009 and are a “first-time” home buyer, you can qualify for a tax credit. The credit is equal to 10% of up to $80,000 of the purchase price.
- You must not have owned a residence in the U.S. in the previous three years.
- The credit phases out between $150,000 and $170,000 of adjusted gross income for joint filers $75,000 to $95,000 for single filers.
- The credit is refundable to the extent it exceeds your regular tax liability — which means that if it more than offsets your tax liability, you’ll get a refund check — but it does not offset the alternative minimum tax.
- You can elect to claim the credit for a 2009 home purchase on your 2008 tax return.