$8,000 Homebuyer Tax Credit – Claim Your Cash NOW!
Posted by Louise Scoggins on Wednesday, April 1st, 2009 at 11:21am.
I’m sure you have heard in some way or another the buzz around the Real Estate industry in regards to the new Homebuyer Tax Credit. So what is it, and how does it work? Let me explain. It’s pretty cool if you ask me…
The tax credit is essentially cash-in-hand for first-time homebuyers who purchase a home before December 1st, 2009. The credit is applied when you file your tax returns for 2009 as a cash credit. (UPDATE: you can now admend your 2008 tax return to get your money this year!) For example, if you OWED the IRS $3,000, then you would actually get a check BACK for $5,000! Or, if you were already getting a return of $3,000, you would get a return of $11,000 after the $8,000 was applied!!! Sign me up!! I will take free money any day!
There are some qualifications for the credit. First, you have to live in the property you buy for at least 3 years. A single person’s income cannot exceed $75,000, and a married couple’s income cannot exceed $150,000. The credit is for 10% of the home’s current value, up to $8,000 (or $4,000 for married couples filing separate tax returns). You must be a first time homebuyer – meaning you have not owned a home in the past 3+ years, and the home must be used as your principal residence.
Thank you for visiting our blog! We strive to provide you with unmatched customer service and the most updated technology to make your home buying or selling experience as stress-free as possible. We appreciate your thoughts and opinions. Please feel free to comment on any subject that matters to you.
Louise Scoggins
Metro House Hunters, Inc.
Phone: 678.520.5382 | Email Us
Visit our Atlanta Real Estate site!
Blog Tags
Print
Share9 Responses to "$8,000 Homebuyer Tax Credit – Claim Your Cash NOW!"
Hello.
I am planning to buy a home for the first time by December 1, 2009. I am hoping to get the tax credit now for a down payment for my house. Can I claim the tax credit now in 2009? If so, how do I go about in doing that?
Thank you.
Posted on Monday, August 3rd, 2009 at 7:57pm.
Hi, Chandaron! Great question. The first time homebuyer tax credit is not readily available for down payment purposes. However, one way to combat this is by reducing your income tax withholding. Reducing your withholding amount (up to the amount of credit you qualify for) will increase your take-home pay and thus allow you to put the extra money you bring home each month into a savings account for your down payment. Otherwise, the tax credit may only be applied once you close on the home and claim the credit on your taxes.
There is another option available for you, though, and that is the Georgia Dream Program. The Georgia Dream Program is a specialized program allowing $14,000 grants to homebuyers that purchase foreclosure properties. There are qualifications to be met -- and you MUST use one of the GA Dream allocated lenders -- but the $14,000 can be used towards your down payment and closing costs. So, that may be something to keep in mind.
Let me know if you have any other questions and what I can do to help!
Posted on Monday, August 3rd, 2009 at 9:51pm.
how do i know if i qualify..
Posted on Tuesday, September 15th, 2009 at 10:28am.
Hi, John! You can qualify for the tax credit if you have not owned a home within the past 3 years. If you haven't, then you qualify for the tax credit. You would also need to be closed on something before December 1st, 2009, so you really only have about 6 weeks to get something under contract and be able to close in time. Your next step would be to talk with a mortgage broker to see how much mortgage you can afford, as well as how much $$ you will need for your down payment and closing costs. I can help you with this if you'd like. Just let me know!
Posted on Tuesday, September 15th, 2009 at 2:26pm.
Hi, Can I purchase my first home with cash and get a tax credit, or is it for people who only do mortgage? Thank you!
Posted on Thursday, November 12th, 2009 at 8:17pm.
Hi, Irina! Yes, you can absolutely claim the tax credit money on a cash purchase as long as you are a first time homebuyer, the home will be your primary residence, and you are below the income restriction ($125K for a single buyer, $225K for a couple). I would be happy to help you with your home search. Please feel free to call or email me anytime! 678-522-4035 / info@thinklouise.com
Posted on Thursday, November 12th, 2009 at 9:47pm.
[...][...]
Posted on Saturday, May 22nd, 2010 at 1:49pm.
[...][...]
Posted on Monday, May 24th, 2010 at 9:41am.
[...]$8,000 Homebuyer Tax Credit – Claim Your Cash NOW!
I’m sure you have heard in some way or another the buzz around the Real Estate industry in regards to the new Homebuyer Tax Credit. So what is it, and h...Read More
April 1st, 2009 10:21am[...]
Posted on Tuesday, April 14th, 2009 at 9:14am.