[Editor's note: This blog has moved to its official and permanent home at AtHomeInThePoconos.com]
1. The first-time homebuyer tax credit is good for sales that close between April 8, 2008 and Dec. 1, 2009 (i.e., from April 9, 2008 through Nov. 30, 2009). For a new construction, the date of occupancy must be on or before Nov. 30.
2. The credit is actually for 10% of the purchase price of the home. The maximum credit allowed is $8,000.
3. A tax credit is a dollar-for-dollar reduction in the amount of federal income tax you owe. If your total liability is less than your first-time homebuyer tax credit, the difference will be refunded to you (e.g., if you qualify for the whole $8,000 and your total tax liability is $5,000, you’ll receive a $3,000 refund).
4. A first-time homebuyer is defined as one who has not owned a main home for at least three years (in the case of a married couple, neither partner may have owned in the last three years).
5. In order for you to qualify for the tax credit, your modified adjusted gross income must be $95,000 or less ($170,000 for married couples filing jointly). In order for you to qualify for the full $8,000, your modified adjusted gross income must be $75,000 or less ($150,000 or less if married and filing jointly).
6. The home must be purchased from someone who is not your relative; a home purchased from a relative or acquired as a gift or an inheritance is not eligible.
