More Info On the $8000 Tax Credit

How does the new tax credit differ from teh 2008 tax credit?

The most significant difference is the this year's tax credit does not have to be repaid! This tax incentive is a true tax credit. but home buyers must use the residence as a principal for at least three years or face having to repay it. Certain exemptions do apply.

How do I claim the tax credit? Do I need to complete a form or application?

You can claim the tax creidt on your federal income tax return. specifically, home buyers should complete IRS From 5405 to determine their tax credit amount,and then claim that amount on Line 69 of their 1040 income tax return. No other applications of forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-timehome buyer tests.