Tax Rebate for First Time Home Buyer
December 14, 2009
We all have a dream home in mind but actually purchasing that dream home for the first time is an important mile stone. President Obama has created one of the best first time home buyer opportunities, the rebate opportunity gives first time home buyers up to $8,000.
Most first time home buyers have taken full advantage of this opportunity, there are some who are still critical and do not want to take this step with fear that this would lead to further complications.
Here is a summary of the tax rebates and other facilities offered to first-time homebuyer,
In 2008, up to $7,500 was given to first time home buyers and the credit is not paid back. $3,750 for married couples filing separate returns
Early 2009 up to $8,000 were given to first time home buyers and the credit is not paid back. $4,000 for married couples filing separately
Late 2009, up to $8,000, was given to first time home buyers and the credit is not paid back
Early 2010, $8,000, will be given to first time home buyers and the credit is not required to be paid back
Early 2010, $6,500, will be given for “long-term residents” buying a new home, and the credit is not required to be paid back. $3,250 for married couples filing separate returns.
Tax credit is not allowed if the purchase price of the home exceeds $800,000.
Buyers should not have bought or owned a home before, newly married couples and new immigrants are considered as first time buyers but those who want to own a second home also are entitled to tax rebates.
In order for a second time home buyer to qualify they need to have lived in their residence for a period of 5 years consecutively.
How long does it take to receive the check? The check is given to those who first purchase the house and close the deal. Once the tax papers and other paper work are in order and filed properly, the check will be released as quickly as 4 weeks. However, there are instances where the checks have taken up to 12 weeks.
This is due to the documentation and paper work being filed incorrectly.
In the United States, almost 1 Million people have taken advantage of the tax rebate of $8,000, since it was introduced in January 2009.
Here is a brief checklist of the required provisions when purchasing a home and being eligible for the tax rebate:
Eligibility time frame: This has been amended up to April 2010 from the previous deadline date of 30th November 2009.
Eligible income qualification limit: The first time home buyers tax rebate will be eligible to individuals with a gross income (MAGI) of up to $125,000. Up to $250,000 for couples and up from $75,000 for individuals. These requirements may change a little for 2010.
Tax Credit Exclusions: Homes costing more than $800,000 is not eligible for the credit. People applying for the tax rebate should be over 18 years old. Tax rebates cannot be claimed if the house is inherited or gifted.
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11 Responses to “Tax Rebate for First Time Home Buyer”
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I filed for my First Time home Buyers tax credit in June of 2010.
I qualalify and they have recieved all my paperwork which was done by a qualified tax accountant. After several phone calls and letters from the IRS I still have received a check. Is this normal?
We are qualifying for the $6,500 tax credit. When do we file to receive this credit or how do we go about getting it?
Thank you!
I am trying to find the page with document to file for my first time home owner rebate—please help, I need to file before end of June.
Thanks, Charlie
I am under contract for a new construction home, that does appear to be able to close before June 30, 2010. Will an extention be granted?
I am buying a home, but we will not clese until August 3, 2010. Will I still qualify for a rebate from the federal or state?
If so, what are the specific things that I must do to collect this rebate, and how long will it take to get it.
Also, if the stimulus package on first times buyers is up, will there be an additional package coming soon?
Thank you.
Danny Garcia
what time frame is the tax rebate given i know someone who bought a house in oct/nov 2009 and filed taxes in late february , she has not received anything on her rebate, do you have a list we can check or something to make sure she is going to get hers
I completed my tax returns February 1st. I have not recieved my return as of yet. When I call in I am not able to reach a supervisor. I am told it will be 45 days everytime I call.I started calling February 15th. They sent me a letter requessting my signatureI signed and mailed express mail recieved March 26. Then given another 45 days for the return. I have exceeded that time frame and called several times since to get a date of return. I have yet to recieve my taxes. Three request have been sent to the tax payer advocate department. Two were denied without notice and one pending. No reason why. IRS reps stated no reason listed for denial.
Can you find out what the delay is and if so let me know asap. Look foward to hearing from you soon.
I’m buying a home in April 2010. The current tenants are going to rent the home from me until they find another home to buy. Do I have to have the new home as my primary reisident immediately, or do I need to occupy the house within a specific time frame?
Lisa,
If you file separately, then you would get $4000 per person (based on the information above). If you file as a couple, then the amount would be $8000. In November 2009, the eligibility limits were different with regard to the income. I believe (check with a tax accountant or tax attorney) that the income levels maxed out at $75000 per person or $150,000 for a couple for the rebate ending on November 30, 2009. The amount of rebate you receive should be based on 10% of the cost of the home. For instance, if your home was $65,000, then you would be eligible for a $6500 rebate. Hope that helps. Please speak to an tax accountant or attorney, as I am not a specialist.
Eric,
I would seek the counsel of a tax accountant or attorney. I am not sure exactly what your entitlements are with regard to paying the loan back, but I don’t believe that you are entitled to the $8000 rebate because it was put into place in 2009, after your home purchase. The new incentive states that you have to own your home for at least 5 years in order to take advantage of the rebate if you are not a first time home buyer.
I would speak to someone regarding the $3750.00, though. As it clearly states above that if you are married and filed separately in 2008 as a first time homebuyer and used the rebate, you did not have to pay it back. Please check with someone (tax accountant or attorney) to make sure you are getting the correct information.
Good luck!
How can we know how much we will get for a new house that as been bought in november 09. I need to calculate my tax this year so i can budget and would like to know the amount of money allocated for the first home buyer tax rebate offered this year. Is it a per family or per individual policy, can my husband also claim a tax return for buying the first house with me ?
I closed on my home on November 21, 200. When I filed my income taxes with H&R Block, I was told that as a first time homeowner I was entitled to a one time tax free loan of $3,750.00, which had to be paid back beginning 2009 in increments of $250.00 for 15 years. I have never owned a home my entire life. I earn less then $50,000 per year. When I file my taxes for 2009, will I be entitled to the $8,000.00 rebate? I am very confused, so can someone please help me with this question.
Sincerely,
Eric S. Serlin