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$8000 first time home buyer tax credit?

The 8000 first-time home buyer credit is it a check for 8000 or a deduction. and what is a tax credit.?

  • The 8000 first-time home buyer credit is it a check for 8000 or a deduction from your over all income. and what is a tax credit.

  • Answer:

    When you file your taxes, it is a credit towards your tax return. For example, when you do your taxes for 2010, if, without the tax credit you would owe $8,000, the tax credit would wipe that out and you would owe nothing. If you owed $1,000, the tax credit would wipe out the $1,000 and the government would send you a check for $7,000. If the government owed you $1,000, they would add the tax credit on and you would get a check for $9,000. If you file an amended for 2009, after processing, the government would send you a check for $8,000.

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this is a credit in the form of money!

A tax credit reduces your tax owed. The FTHB tax credit is a refundable credit meaning if your tax liability is reduced to zero, you can still get the refund. If you were a first time home buyer or haven't owned a home or interest in a home for 3 years and purchased a home in the last two years, you may be eligible if you didn't purchase from a close relative. You have to close on the sale b y June 30, 2010 (having been under contract by 4.30.10) unless you are in the military in which case you have another year, June 30, 2011. See the instructions for form 5405 at www.irs.gov

It is a check mailed out to you after you adjust your previous years taxes. the catch is to stay in the home you purchased for 3 years or you have to pay it back

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