$15000 Tax Credit First Time Home Buyers from IRS

The Senate voted Wednesday night to give a Tax Credit or Tax Break of up to $15,000 to first time homebuyers while voting on the Economic stimulus Plan

First Time Homebuyers credit was originally planned for upto $7500 per year however the limit has been 
now raised to a new $15000 limit. That means you would get upto $15000 if you qualify for first time homebuyers credit.

The First Time Homebuyer Credit is a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008. The First time homebuyer credit is an interest free loanso it must be repaid over a 15-year period.

Who qualify as First time Homebuyers Tax Credit of $15000?

The home you are planning to buy must fall under United States territory. You must buy the home after April 8, 2008 and before July 1, 2009. For a home that you construct, the purchase date is the first date you occupy the home. Taxpayers who owned a main home at any time during the three years prior to the date of purchase are not eligible for the credit. This means that first-time homebuyers and those who have not owned a home in the three years prior to a purchase can qualify for the credit. Vacation homes and rental property do not qualify for this credit.

You would need to file IRS Form 5405 to claim First time homebuyers Tax credit in 2008 2009 federal tax return.

Please note that there are Income Limits on how much Tax Credit a First time homebuyer can avail. The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income (MAGI). For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000.

IRS still hasn't officially released any information on the new $15000 First Time Homebuyers Tax Credit yet but we hope to see an update by this week.