Tax credit entices some first-time homebuyers

03.21.09
By Timothy Jones

A number of Americans have been extra careful to monitor their credit score as the financial crisis adds new stress for individuals borrowing money.

Some consumers who remain in good standing are even considering taking out a home loan to buy property while interest rates remain at low levels.

If you happen to be a first-time homebuyer, don't forget to take advantage of tax credits now being offered, says the IRS.

The April 15 individual tax filing deadline is quickly approaching, but the IRS is reminding consumers that if you have already filed, you can still collect a tax credit for first-time home purchases.

"The new credit can get money in the pockets of first-time homebuyers quickly," said IRS Commissioner Doug Shulman. "For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they've already filed their tax return."

The American Recovery and Reinvestment Act includes provisions for qualifying taxpayers who purchase a home before December 1 to receive $8,000 in credit. Married individuals filing separately can claim $4,000 each.

While these tax credits were announced earlier this year, the IRS has recently started a more aggressive campaign to educate Americans on benefits available to them.

Since the credit can be claimed on either 2008 or 2009 tax filings, the IRS says consumers have a number of ways via extensions and amendments to receive the credit this year if they plan to buy a home in the near future.

Otherwise, wait to claim the credit on next year's return, says the agency. The IRS encourages potential homebuyers to visit www.irs.gov to review full details of the program.

More Economic Crisis Articles | News Home | Discuss in our Forum

Homebuyer credit may be availabe to some eligible taxpayers