If you purchased a home last year, you may be eligible to claim a tax credit that could be worth several thousands of dollars. Last year, president Obama signed the American Recovery and Reinvestment Act, giving millions of Americans a little extra cash in their pockets this 2009 income tax year. The federal housing tax credit was just one of many tax incentives that were offered to tax payers in 2009.
The federal housing tax credit allows people who purchase their first home and current home owners who would like to move up the opportunity to do so and collect a nice tax credit that is fully refundable. If you are a first time buyer or a move up buyer, you can collect a nice tax credit for up to either $6,500 or $8,000.
First time buyers can enjoy a credit for 10% of the purchase price of their home, up to $8,000. Move up purchasers can claim 10% of their purchase price up to $6,500. Your eligibility as a move-up buyer is determined by how long you have owned your current home. If you have lived in your home for at least five consecutive years, you may be eligible.
Author: Carla Kessler