| The President's Stimulus Package may be able to help | | | | will be used as the main determining factor of |
| you buy your first home. Find out whether or not | | | | whether or not you qualify for the tax credit. For a |
| you qualify for the special tax credit available as part | | | | single person, MAGI of $75,000 is the qualifying |
| of the federal Stimulus Package. | | | | number. For a married couple it would be $150,000. |
| The main thing to consider is that the program is for | | | | There are partial credits available for those with a |
| first time home buyers. If this is your first home | | | | MAGI above these amounts up to MAGI of $95,000 |
| purchase, there may be a tax credit available to you. | | | | for singles and $170,000 for married couples. Spouses |
| If, for the past three years you haven't owned a | | | | who file separately can each claim the lesser of |
| home, you may also qualify. Owning a vacation home | | | | either $4,000 or 5% of the purchase price. |
| or rental property doesn't make you ineligible for the | | | | Changing your tax withholdings in 2009 to the |
| tax credit. | | | | amount of the tax credit may help you save for a |
| One question that comes immediately to mind is how | | | | down-payment if you intend to buy by the end of |
| much of a tax credit can you get? | | | | the year, but be sure of your plans because if things |
| The credit can be the smaller of either 10% of what | | | | change and you do not buy your home by the close |
| the home costs, or $8,000. | | | | of 2009 the IRS will expect repayment. |
| In order to qualify, you would have to buy the home | | | | There is a special situation for those with a home |
| between January 1 and December 31 of 2009. | | | | under construction. Eligibility is determined based on |
| Neither repayment nor recapture are applicable unless | | | | when the home is occupied. |
| you have owned for fewer than 36 months. | | | | If you close on the home during 2009 and move in |
| Regardless of whether your tax paid equals the | | | | before December 31, 2009, you can qualify for the |
| amount of the tax credit or is less, you may still get | | | | credit, regardless of building starting in 2008. |
| a refund equal to the maximum credit. | | | | A home purchased in 2009 may possibly be eligible |
| Modified adjusted gross income, known as the MAGI, | | | | for a credit on the 2008 tax year. |