$8000.00 Tax Credit

Available for first time buyers or those who haven’t owned a home in past 3 years.

Eligible if meet following criteria:

owner occupied residence

Adjusted gross income of $75,000 for singles, $150,000 for married couples. Partial credit for those over the limit

Must live in home for 3 years or subject to some recapture amount

Credit is for $8000.00 or 10% of homes value, whichever is less.

Easy to apply for credit- Just claim in on your tax return

This is not down payment assistance.

Scenerio’s to help explain tax credit.

1. Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.