The highlights of this first time buyer benefit is 10% of the cost of the home up to $8,000 - whichever is less on their 2008 and 2009 taxes. A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of withholding they paid during the year plus anything extra they had to pay when they filed their returns.
It is an interest free loan that enables consumers to receive a tax credit dollar for dollar on their personal income tax return in the following calender year. Pay back begins the year after this and is in equal installations over a 15 yr. period. If the home is sold prior to this time frame, the remainder balance is due.
Persons who are elligble are filing single with no greater than income of $75,000, jointly $150,000. A partial credit can be received on the single income of $75,001-94,999 and jointly $150,001-169,999. Persons with a greater income of single $95,000 or jointly $170,000 are not eligible.
Comment from Loan Modifications on April 11, 2009, 1:59 am
Great stuff. Nice to read some well written posts that have some relevancy !