$8,000 Tax Credit is to YOUR advantage

The “American Recovery and Reinvestment Act of 2009,” which was signed into law last week by President Obama provides an $8000 tax credit for first-time Passaic County home buyers.

Important Facts To Know:

-It is a tax credit to home buyers, not a loan as in last year's program;

-It is only for first time home buyers, defined as someone who has not had an ownership interest in a principle residence in the 3 year period prior to the date of the 2009 purchase;

-The buyer must remain in the home for a minimum of 3 years;

-It is applicable to purchases between January 1, 2009 and December 1, 2009; and

-Full credit is available to those with adjusted gross income of $75,000 or less ($150,000 for married filing jointly). The credit is phased out entirely for those with adjusted gross income over $95,000 ($170,000 for married filing jointly).

If you bought a home last year under the old $7,500 tax credit rules, those rules still apply to your 2008 home purchase.