How to Get a $7500 Tax Credit

Are you a first-time home buyer? Are you a US Citizen who files tax returns? Have you not defaulted on a housing loan? Are you familiar with the Housing and Economic Recovery Act of 2008 signed into law on July 30,2008? Just check out this new law that may land you up to $7,500 in tax credits!

Difficulty: Easy

Instructions

1. 
    
   Tax Credit

   In order to take advantage of this law, everyone needs to know that the purpose of this act is to stimulate the housing market and economy and stabilize home prices and provide a financial resource for home buyers in the year they purchase a home. If this sounds like you, your next step needs to be to check out the income limits.

2. 
    
   Tax Credit

   A full $75,000 credit is available for singles with no more than $75,000 AGI and couples with no more than $150,000. For a partial credit, the income limits for this law is between $75,000 and $95,000. If you are married filing jointly the income limit is between $150,000 and $170,000.

3. 
    
   Tax Credit

   The first time home buyer gets a tax credit equal to ten percent of the qualified home purchase price. The credit is capped at $7,500. This is an interest-free loan and home buyers are required to repay the credit to the government, without interest, over 15 years or when they sell the house.

Tips & Warnings

• Check with a reliable realtor.
• There are too many ins and outs of this law--but if you qualify, it is a great deal!
• Do not buy a house if you cannot afford one. Go slowly, and be as debt free as possible before taking on a significant purchase like this.

Resources

• http://www.hud.gov/news/recoveryactfaq.cfm
• http://www.realtor.org/government_affairs/gapublic/hr_3221_key_provisions
• http://en.wikipedia.org/wiki/Housing_and_Economic_Recovery_Act_of_2008

[Elander]

on 1/2/2009 Wow. That's great.

[librarylady]

on 1/1/2009 really a timely article. Thanks

[Geargirl113]

on 12/31/2008 This is great. Thank you for making it this tax credit so simple to understand.

[showpup]

on 12/29/2008 What a great deal! Thanks for getting the word out in a way people can understand. I had heard of it before but it really didn't sink it what it was all about. Thanks for explaining it for me. 5 stars

[QueenofMisc]

on 12/28/2008 Good info!