$8,000 HOME BUYER TAX CREDIT AT A GLANCE

• The tax credit is for principal residence purchases for first-time home buyers or buyers who have not owned a principal residence during the three-year period prior to the purchase.  
• The tax credit is a dollar-for-dollar reduction in the federal tax liability and is actually a refundable credit.  This means if you owe less than the credit you qualify for in federal taxes, you will receive the difference as a refund.
• The credit is equal to 10% of the purchase price, up to a maximum of $8,000. 
• It is available for purchases between January 1, 2009, and December 1, 2009.
• It does not have to be repaid as long as you live in the home for three years. 
• The income limits are based on modified adjusted gross income (take the AGI at the bottom of page of form 1040 and adjust for items such as higher education costs).  The limit is $75,000 for single taxpayers and $150,000 for married couples.  There is a phase out of the credit when a single taxpayer exceeds $95,000 or a married couple exceeds $170,000. 
• Do not rely on the information provided above without first verifying its accuracy with a tax professional.

For more information: www.federalhousingtaxcredit.com