Is there a tax credit that doesn't have to be paid back for first time home buyers?

Thought I heard of an option that if you were a first time home owner you would get a certain amount back for a return. An amount that wouldn't have to be paid back.Is this true? Or did I get the wrong info?

Asked by M.T. 34 months ago Similar questions: tax credit paid back time home buyers Business > Taxes.

Similar questions: tax credit paid back time home buyers.

Sure is. Eight grand. federalhousingtaxcredit.com/Congress" rel="nofollow">federalhousingtaxcredit.com/Congress Enacts Bigger and BetterHome Buyer Tax CreditA tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. Enhanced Tax Credit Provides Outstanding Opportunity for Home BuyersIn its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers. But time is of the essence for buyers who want to take advantage of this opportunity.

Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible. Use the links below to find out more about the tax credit. Sources: federalhousingtaxcredit.com/ .

Yes, there is a tax credit that doesn't have to be paid back for first time home buyers. Jeremy's Financial Planning BlogBy Jeremy Vohwinkle, The $8,000 Tax Credit for First-Time Home Buyers in 2009Saturday March 7, 2009Have you already purchased a home this year, or plan to sometime in 2009? If so, there is some good news.

The American Recovery and Reinvestment Act of 2009 has a tax credit of up to $8,000 for first-time home buyers. This was done in part to help stimulate the housing market, but if you were already in the market for a home anyway, it may provide tremendous tax relief to you as well. Even though this is a significant tax credit, you have to be careful and make sure you're buying a house for the right reasons rather than buying a house for the sake of getting a tax credit.In some situations it may still be cost-effective to rent or wait before purchasing a house, so consider your situation carefully.

In addition, while the tax credit generally doesn't have to be paid back, if you were to move or sell the house within three years, you might be on the hook to have some or all of that credit recaptured. So as always, careful planning is key. Take advantage of the credit if you qualify, but make sure you aren't putting your long-term financial plan in jeopardy by jumping into a home purchase too soon Sources: http://financialplan.about.com/b/2009/03/07/the-8000-tax-credit-for-first-time-home-buyers-in-2009.htm .

$8,000 first-time home buyer tax credit now available Unlike the previous $7,500 credit available to this group of buyers, the credit outlined in the American Recovery and Reinvestment Act of 2009 does not have to be paid back -- if the home remains the buyer's "main home" for at least 36 months after the purchase date, according to the Internal Revenue Service's Web site. First-time buyers, for the purpose of this credit, are those who have not owned a home in three years. Buyers have to purchase a home before Dec.1 to be eligible, and the credit can be claimed on a home buyer's 2008 or 2009 tax return.

Tax returns for 2008 are due by April 15, but most taxpayers can get automatic extensions to Oct. 15 without citing a reason.(You must pay any estimated tax liability at the time the extension is filed. ) Filing an amended 2008 return after you buy would also be an option for getting the credit sooner. "For first-time home buyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman, in a news release."This important change gives qualifying home buyers cash they do not have to pay back.

"Buyers can claim 10% of the purchase price, up to $8,000, or $4,000 for married individuals filing separately, according to the IRS' Web site. The credit starts to phase out for those whose adjusted gross income exceeds $75,000, or $150,000 for joint filers. The IRS has posted a revised version of the form required to claim the credit, Form 5405, on IRS.gov.

Visit IRS.gov's first-time home buyer page. "The expansion of the first-time home buyer tax break as part of the president's recovery agenda gives money to taxpayers when they need it most, while also targeting an important group of buyers," said Treasury Secretary Tim Geithner."We view our economic recovery plan, our financial stability plan and now this homeowner affordability plan as three legs of the same stool -- an integrated whole that represents our immediate response to the current crisis. Last year, almost one out of two home buyers bought for the first time, according to the Treasury Department's news release.

The addition of new homeowners helps reduce inventory by filling vacant homes and allowing the sellers of existing homes to move on to another home. Real-estate industry groups are hopeful that the new credit will have an effect on the housing market. Lawrence Yun, chief economist for the National Association of Realtors, said on Wednesday that the tax credit and other measures to stabilize mortgage rates and housing markets would probably boost home sales by about 900,000 this year.

See Economic Report. The U.S. Department of Housing and Urban Development also announced on Wednesday that it will temporarily increase loan limits for Federal Housing Administration-backed mortgages, also in accordance with provisions in the stimulus. The new FHA limits now go up to $729,750 in high-cost areas.

The new limit on FHA's reverse mortgage product also has been raised to $625,500. The higher limits are in effect until the end of the year. Sources: http://www.marketwatch.com/news/story/8000-first-time-home-buyer-tax-credit/story.aspx?guid={1288C153-0EFE-475B-997F-84676583BC37} .

1 I just heard this as well from a friend who has a daughter buying a house this month.

I just heard this as well from a friend who has a daughter buying a house this month.

2 Here's the info... federalhousingtaxcredit.com/ .

A citizen of Norway had an order delivered in WA. He paid taxes. How can he get a refund?

" "What if I am purchasing a home today. Would I get the $15,000 tax credit?" "Any good book for first time new home buyers" "Tax Time! Do you want to learn some interesting facts about taxes from a Pulitzer Prize winner?

" "Where on my business taxes do I account for sales tax paid on purchases for (a) inventory (b) expenses i.e. Equipment" "Can you ever avoid capital gains taxes on selling your home by putting the money right back into another home? " "Do you get escrow monies back if taxes and insurance are paid and there is a balance left over?

A citizen of Norway had an order delivered in WA. He paid taxes. How can he get a refund?

What if I am purchasing a home today. Would I get the $15,000 tax credit?

Any good book for first time new home buyers.

Tax Time! Do you want to learn some interesting facts about taxes from a Pulitzer Prize winner?

Where on my business taxes do I account for sales tax paid on purchases for (a) inventory (b) expenses i.e. Equipment.

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