First Time Homebuyer Credit Expands

First Time Homebuyer Credit Expands - Home buyers who purchase a home from January 1, 2009 to November 30, 2009, may be eligible for a refundable tax credit up to $8,000 with no payback requirement. If you have not owned a home in the last 3 years, you may still qualify to be a first time homeowner. This credit applies to the purchase of taxpayers principal residence. If you have purchased a home this year and closed escrow, we can amend your 2008 return and request the credit now instead of waiting until you file next year's tax return. This credit reduces a tax payers bill or increases their refund dollar for dollar. This refund is fully refundable and will be paid to eligible taxpayers.

For houses purchased between April 8, 2008 and December 31, 2008 there is a first time home buyers credit up to $7,500 that will have to be paid back, the credit is similar to a no interest loan and must be repaid in 15 equal annual installments beginning with the 2010 income tax year.