SOME FACTS ABOUT THE $8,000 TAX CREDIT FOR HOME BUYERS
Finally there's some good news for home buyers, and it's in simple, easy-to-undertand language - MONEY IN YOUR POCKET!
Some of the media reports about the credit have been confusing, so we're offering a quick and easy summary of the highlights of this exciting part of the new economic stimulus plan:
Q: This is an &8000 tax credit. The one previously available to home buyers was $7500. What's the difference?
A: The tax credit previously offered to buyers was $7500, but it had to be repaid over time. It was still a good deal, as it was essentially an interest-free loan. But the $8000 credit DOES NOT HAVE TO BE REPAID!
Q: What are the time constraints, or is this an open-ended opportunity?
A: The tax credit applies to homes purchased between January 1, 2009 and December 1, 2009.
Q: Do I have to be a first-time home buyer to qualify?
A: No, though some reports have indicated otherwise. Buyers may not have owned a home for the past three years to qualify as a "first time" honme buyer. You must also live in the house for at least three years, or you will be obligated to pay back the credit.
Q: Are there income restrictions?
A: Yes. To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. Higher-income buyers may receive a partial credit.
Q: How do I apply for the credit?
A: It is easy. Just claim it on your tax return. No other forms or papers have to be filed. And even better news...taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit!
Home buyers realize that $8000 can go a long way toward settling into a beautiful new home! Use it for upgrades, appliances, furniture - it's yours to spend (or keep) as you like!
By Carole Townsend, Gwinnett Daily Post
March 8, 2009