Below are some easy to understand facts and information regarding the tax credit. This is a terrific opportunity for all first time homebuyers!

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.

All first time home buyers purchasing a home on or after January 1,  2009 and before December 1, 2009 are eligible to claim the tax credit.

The definition of a first time home buyers as defined by the law is: A buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

The amount of the tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

There are income limits to receive the “First Time Homebuyers Tax Credit”. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return.