Thank you Mr. Government – or should that read  “Thank  You Tax Payers”.  First-time home buyers have been handed an incredible gift – a tax credit of up to $8,000.00.  In its efforts to help stimulate our economy and revive the housing market, Congress has passed legislation affecting all first time home buyers that purchase a home between January 1, 2009 and December 1, 2009.   Time is of the essence as you can see.  There is no promise this will continue beyond December 1, 2009.

Note that this is NOT a loan and does not have to be paid back.  It really is this time a free gift, a real credit.  You qualify as a “first time Home buyer” if you have not owned a principal residence during the three-year period prior to your  purchase.  There is also an income requirement that many will have no trouble in meeting.  As a single taxpayer you can make up to $75,000 and if you are married and file as a couple your combined income may be up to $150,000 in order to qualify for the full tax credit.  Of course it is always recommended that you consult with your tax consultant prior to making any large tax-related decisions.

There are other intricacies to this program but it is really not that complicated.  Hooray for the Government, they actually made a plan simple to understand and utilize.  For more information on this program, go to: federalhousingtaxcredit.com