What you don’t know about the 1st time home buyer tax credit…

If you are betting on getting the 1st time home buyer tax credit you will NOT necessarily receive the full $8,000 credit being advertised heavily by Congress. The credit is a maximum of 10% of purchase price and only available to first time homebuyers making less than or equal to $75,000 (single) or $150,000 (couple). Example: If the single buyer earns Adjusted Gross Income of more than $95,000 there is NO credit available.

(Partial credit is available for income between $75,000 and $95,000 (single) and $150,000 and $170,000…it phases out to zero credit)

Program currently ends November 30, 2009–transactions must be closed no later than this date.

For more information click on the link to review the IRS article on implementing the First Time Homebuyer Tax Credit and the form that needs to be filed with the IRS so you know how to claim a purchase in 2009 on your 2008 taxes.