The program you are referring to is the first-time home buyer tax credit which is part of the American Recovery and Reinvestment Act of 2009. The credit can be used for a primary residence in the United States purchased after April 8, 2008, and before December 1, 2009.
According to the IRS, you are considered a first-time home buyer if you — and your spouse, if you are married — did not own any other main home during the three-year period ending on the date of purchase. You do not qualify, however, if your modified adjusted gross income is $95,000 or more ($170,000 or more if married filing jointly).
The home buyer tax credit is a very valuable tax credit because it does not have to be paid back. For more information, review Form 5405, First-Time Homebuyer Credit, on IRS.gov You can find it at: www.irs.gov/pub/irs-pdf/f5405.pdf.
We would like your feedback on this Personal Finance Frequently Asked Question.
