All About the $8,000 First-Time Homebuyer Tax Credit

Here are some frequently asked questions about the Home Buyer Tax Credit, and a link to loads of details.

As always, consult a tax advisor or a legal professional for your specific questions.

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

Common Questions
* Who is eligible to claim the tax credit?
* What is the definition of a first-time home buyer?
* How is the amount of the tax credit determined?
* Are there any income limits for claiming the tax credit?
* What is "modified adjusted gross income"?
* If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
* How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
* How do I claim the tax credit? Do I need to complete a form or application?
* I read that the tax credit is "refundable." What does that mean?
* I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
* Is a tax credit the same as a tax deduction?
* I bought a home in 2008. Do I qualify for this credit?
* If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?

Answers
Go to: http://www.federalhousingtaxcredit.com/2009/faq.php