The American Recovery and Reinvestment Act of 2009
ENHANCED HOME BUYER CREDIT
Who Qualifies?: Anyone who has not owned a home for the preceding three years. That means you may still qualify for the incentive even if you and your spouse owned a home more than three years ago.
How Much?: The incentive calls for a credit of ten percent of the purchase price up to a maximum of $8,000 for a single resident or a married couple filing jointly.
Are There Limits?: The credit is phased-out based on your modified adjusted gross income (MAGI).
How Does It Work?: The tax credit reduces a your tax bill or increases your refund, dollar for dollar. It is fully refundable, meaning that the credit will be paid out to you, even if you owe no tax or the credit is more than the tax that you owe. Even better, there is no repayment requirements associated with this incentive if you keep your home for at least three years.
What are the valid dates to purchase a home?: The incentive is for homes that close between January 1, 2009 and November 30, 2009.
Principal Residences: The tax credit is available for purchases of principal residences. Purchases of vacation homes and rental property are not eligible.
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