The $8000 Home-Buyer Tax Credit

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Recently, I have been getting a lot of phone calls and e-mails asking me questions about the $8000 home-buyer tax credit so I wanted to answer the most asked questions and make it as simple as possible.

So who gets the credit? First-time home buyers or someone who hasn't owned a home in three years.

How much is the credit? $8000 or 10% of the home's value, whichever is less.

What do you have to do to get it? Claim it on your 2008-2009 taxes.

It's totally refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of withholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount

Is there a deadline? The purchaser must purchase their new home between January 2009 to November 2009.

Do you have to pay the money back? If you reside in the home for three years, you do not have to pay it back.

Are there any restrictions? Yes. buyers must make less than $75,000 for singles or $150,000 for couples. Higher-income buyers may receive a partial credit.

Is it easy to apply for the credit? Yes. It's as easy as filing your taxes.

What if you already filed your taxes? If you have already completed your tax return, you can file amended returns for 2008 to claim the credit.

It's a great incentive if you are a first-time home buyer. With low interest rates, low home prices, plenty of inventory and now this tax credit, I find myself wishing that I was a first-time home buyer again.

If you are on the fence, it may be time to jump off.

Renee Porsia is a Realtor in Philadelphia. Visit her website to learn more.