First Time Homebuyer Tax Credit~

The home buyer tax credit, which is part of the American Recovery and Reinvestment Act of 2009, is a federal program designed to encourage Americans to purchase their first home.

This program, which continues until December 1, 2009, can make a big difference for many Dallas first-time home buyers. Imagine what $8,000 can do for you! This dollar-for-dollar tax credit is an incentive designed to encourage the rebound of the economy, and it may very well be the incentive you need to purchase your first Dallas home!


Like any other federal tax incentive, however, there are a few terms and conditions of this new home buyer tax credit:


The tax credit is only for first-time home buyers. However, the IRS recognizes anyone that has not owned a primary residence over the last three years to be a first-time homebuyer.
The tax credit is equal to 10 percent of the home’s purchase price. However, the maximum dollar amount given through this program is $8,000.


Only those single taxpayers making less than $75,000 and those married taxpayers making less than $150,000 qualify for the tax credit. There is a reduced tax credit available for individuals who do not meet this income requirement; however, those single taxpayers that make more than $95,000 and those married taxpayers that make more than $170,000 are not eligible to receive any money through this incentive program.


The closing date on your Dallas home must be on or before December 1, 2009 to be eligible for the full tax credit. Unlike the tax credit enacted by Congress in 2008, the $8,000 tax credit does not have to be repaid.


To apply for your $8,000 tax credit, simply claim it on your year-end federal income tax return.
Only Dallas homes that are used for a primary residence are eligible under this tax credit incentive program.