The temporary credit is only available for
home purchases made from Jan. 1, 2009 to
before Dec. 1, 2009 and is equal to 10 percent
of the cost of the home, up to a maximum
credit of $8,000.
Buyers claim the credit on their federal tax
return to reduce their tax liability. If the credit
is more their total tax liability that year, the
buyer will get a refund check for the balance.
Only first-time homebuyers can take advantage
of the tax credit.A first-time buyer is
defined under the tax credit as an
individual who has not owned a home
in the last three years.For married joint
filers, both must meet the first-time
homebuyer test to take the
credit on a
Eligible properties include anything that will
be used as a principal single-family residence—
including condos and townhouses.
There are income guidelines on the credit. Individuals
with an adjusted gross income up to
$75,000 (or $150,000 if filing jointly) are eligible
for the full tax credit. The credit is
phased down for those earning more and is
not available for those with an income above
$95,000 (or $170,000 if filing jointly).
The new tax credit does not have to be repaid
if the buyer stays in the home at least three
years. But if the home is sold before that, the
entire amount of the credit is recaptured on
People who purchased homes under the
2008 $7,500 tax credit program will still be
required to repay that credit to the government
over a 15-year period.
The American Recovery and Reinvestment Act of
2009 features an $8,000 tax credit for first-time
buyers who purchase a home on or after Jan. 1, 2009
and before Dec. 1, 2009.
Details of the tax credit include:
Consult with your REALTOR® or tax advisor
and visitwww.YourIllinoisHome.com to learn
more about the tax credit and state and
federal loan programs.
What you should know about the