Lately, I have been getting a lot of questions in regards to the eligibility of the $8000 tax credit, so this blog is to help answer some of those questions.
According to the National Association of Home Builders, in order to be considered a first time home buyer, you must have purchased a home from January 1st to December 1st of this year to qualify for the tax credit. However, there is an exception for those that have owned before and that exception is that you must not have owned a home in the last 3 years. Also, those that qualify for the tax credit must have a modified adjusted gross income of less than $95,000 for single tax payers and $170,000 for married tax payers. If you meet any of the above requirements then you are eligible for the tax credit.
Your next step would be to file an IRS form 5405 determine the amount of your tax credit and then to put that amount in the 1040 IRS tax return on line 69. Be sure that the purchase of the home is complete before you make the claim otherwise it will not go through. If you have any other questions regarding the tax credit then let me know.