First Time Buyer Tax Credit Tips

How is this home buyer tax credit different from last years (2008)?

the most significant difference is that this tax credit Does Not Have To Be Paid Back!  This tax incentive is a true tax credit. but, homes buyers must use the property as a principal residence for at least 3 years or face having to repay it.  Certain exceptions apply.

How Does A Buyer Claim The Tax Credit?

The tax credit is claimed on the buyer's federal income tax return.  Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, then claim this amount on Line 69 of their 1040 income tax return.  No other applications or forms are required, and, no pre-approval is necessary. Just be sure to make sure that you do qualify for the credit under the income limits and the first-time home buyer tests.