First Time Homebuyers Tax Credit

The "American Recovery and Reinvestment Act of 2009," passed the House on February 13, 2009. Later that day, the Senate also passed the bill and the President signed the bill on February 17, 2009.

The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

The Basics:

• 2009 First Time Home Buyer Tax Credit
• Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit
• Frequently Asked Questions

Information is also available at: http://www.FederalHousingTaxCredit.com