sold Ann Arbor Area First Time Homebuyers Confused about the Tax Credit? I received several calls this week with people wanting to know how to get the $8000.00 tax credit passed in the Obama Stimulus Plan. Many  were thinking they were being given the money to purchase a home. No, you are given a CREDIT on your tax liability.

Here are the rules to apply for the Tax Credit.

If you buy a home between January 1, 2009 & December 1, 2009, you can apply for  the tax credit of “up to” $ 8000. It is actually 10% of the purchase price or whichever is less.

The tax credit does not have to be repaid.

If you are single your income must be below or equal to $ 75,000 per year in salary. If you are a couple filing jointly you can not make over $150,000 per year.

You must purchase a home in the United States.

The home must be your primary residence not a vacation, or investment home.

This tax credit is ONLY for first time buyers.

You are not eligible to claim the credit is you are purchasing from a relative.

You can not have owned a home for 3 years prior to applying for the credit.