Mar 31, 2009

Buy a First Home in 2009, Take a Tax Credit for 2008!

The recent economic stimulus bill lets first-time home buyers take a substantial tax credit -- either on their 2008 or 2009 taxes! This can work even if you haven't bought your house yet. You'd need to either file for an extension now or file an amended return later this year, after the purchase.

The exact amount of the credit is either $8,000 or 10% of the home's value, whichever is less.

For an excellent set of instructions on how to take the credit in 2008, see USA TODAY finance columnist Sandra Block's article, "Claiming this year's first-time home buyer's tax credit is easy," in the Tuesday, March 31st edition of USA TODAY. And for other details, see the CNN article, "Final score: $8,000 for homebuyers."