Just in case you need additional incentive to stop paying rent and purchase a home of your own, there’s a nice windfall for some home buyers in the awaiting economic stimulus bill.
First time home buyers will be able to claim a tax credit worth up to $8,000 -or 10% of the home’s value,whichever is less- on their 2008 or 2009 taxes.
A big plus is that, unlike the previous tax credit, this time around the credit is refundable, meaning tax filers will see a refund of the full $8,000 in most cases.
Income restrictions apply, $75,000 for singles and $150,000 for couples.
To qualify you can not have owned a home in the last 3 years.
Be sure to take notice, the offer is set to expire in November 2009.
If you have already filed your 2008 taxes, just file an amendment after closing on your new home purchase.
If you have questions, it would be best to contact the IRS or your tax consultant.