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As part of its plan to stimulate the U.S. housing market, Congress has passed legislation that states if you qualify your going to get $8000 from the government if you purchased a home between January 1st, 2009 and December 1st, 2009. And you don’t have to pay it back.
 
This is how it works:
The tax credit is for first-time homebuyers, someone who has not owned a home during the prior 3 years and who purchases a home between January 1, 2009 and December 1, 2009.
 
  • The maximum credit for homebuyers is 10% of the purchase price of the home, up to $8,000.
 
  • You do not pay this $8,000 back unless you sell the home within three years from your purchase date.
 
  • The credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000 or $150,000 for joint filers. 
 
If you already filed your 2008 tax return, you have the option to amend your return and claim the homebuyer tax credit this year without waiting until next year to claim it on the 2009 return (see Form 5405 and 1040X below). The credit may not be claimed before the closing date of the home purchase.
 
 
Click here to download WA Association of Realtors Tax Credit Explained
 
 
Click here to download the IRS Form 5405 in PDF format

Click here to download the IRS Form 1040x in PDF format
 
If you have any questions regarding this credit, or anything else relating to purchasing your first home, please contact me.