$8,000 Tax Credit Revisited

A few weeks ago, I wrote a blog on the $8,000 tax credit for first time homebuyers. I received a number of questions asking for further clarification of the credit and how does it compare to the tax credit that Congress passed in July 2008.

The primary difference between the two “tax credits” is significant. Last July’s tax credit had to be repaid at some point. This new program does not have to be repaid if the buyer stays in the house three years.

The second major point is that this tax credit is “refundable.” This means that even if the home buyer might not have a tax liability to offset the tax credit, the government will send the buyer a check for a portion up to the entire amount of the refundable tax credit.

I have attached a link to the federalhousingtaxcredit.com site for a detailed explanation of the program.

http://www.federalhousingtaxcredit.com/2009/faq.php#