First time home buyers tax credit, do I recieve the full tax credit?
Posted by Anonymous in: TaxesMy husband and I just bought our first home, but I'm not sure how the first time home buyers tax credit works. When will I receive the tax credit? Will I receive the full $8,000 or is it based upon my income? I live in Texas, we are both 27 years old and currently make $80,000 combined after tax income.
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Eligibility
• You must be a first time home buyer, meaning you haven't owned a home in the past three years
• The full credit is available for homes costing $80,000 or more
• You cannot buy the home from a relative and it cannot be passed through an inheritance or gift
• You must be a U.S. Citizen
Income Restrictions
• The income limitation is based on your modified adjusted gross income (MAGI)
• If single to receive the full $8,000 your MAGI cannot exceed $75,000
• If single to receive a partial tax credit you MAGI must be between $75,000 and $95,000
• If single you receive no tax credit if your MAGI is greater than $95,000
• For a married couple filing a joint return to receive the full $8,000 your MAGI cannot exceed $150,000
• For a married couple filing a joint return to receive a partial tax credit you MAGI must be between $150,000 and $170,000
• For a married couple filing a joint return you receive no tax credit if your MAGI is greater than $170,000
• For a married couple filing a joint return to receive the full $8,000 your MAGI cannot exceed $150,000
• For married persons filing separate returns you are only eligible for a $4,000 tax credit
Payback Provisions
• As long as your don't sell your home within 36 months from the purchase date, you are not required to repay the credit
• If you sell your home within 36 months, the full amount of the tax credit is due the same tax year
To answer your question, yes, you will receive the full tax credit of $8,000. You can receive this money either through a bridge loan or through a sell-tax-credit (basically, for a sell-tax-credit your lender files the all paperwork) When you file your 2009 tax return (payable April 2010), you will report the tax credit on IRS Form 5405. Remember this current incentive expires on December 1, 2009 and the process can take several 6-8 weeks to process. Below are a few more resources to take a look at, best of luck!
Federal Tax Credit Questions and Answers
IRS First-Time Homebuyer Credit Questions and Answers
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Posted 11 months ago by Brian Robertson (view professional profile)
