I purchased my home in Jan 2008 I don't qualify for the 7500 tax credit what do I qualify for if anything?

Since you have been paying on the home all year, you might have paid enough mortgage interest, private mortgage insurance and real estate taxes to file Sch. A, Itemized Deductions. If your total itemized deductions, which include other items such as taxes paid, medical expenses above 7-1/2 % of your adjusted gross income, charitable contributions and many other items, is greater than the standard deduction for your filing status you will deduct the higher. This will allow you to lower your taxable income by a higher amount than the standard deduction and reducing your taxes. See the instructions for Sch.A on the IRS website for more information. Laura H – H&R Block – Senior Tax Advisor 5 **This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.