The First-Time Home Buyer Tax Credit is the result of the American Recovery and Reinvestment act of 2009, otherwise known as the economic stimulus package.
It contains good news for those looking to buy a home and don't presently own a home, including:
-- The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
-- The tax credit does not have to be repaid.
-- The tax creit is equal to 10% of the home's purchase price, up to a maximum of $8,000.
-- The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
-- Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.