2009 First Time Homebuyer's Credit
According to TurboTax:
Folks who buy their first home between January 1 and November 30, 2009 can qualify for a tax credit worth up to $8,000. Because a tax credit reduces your tax bill dollar-for-dollar, this new break can put $8,000 in your pocket to help pay for your new digs.
Even better: Unlike the $7,500 tax credit available for Americans who bought their first home in 2008, this new version does not have to be repaid.
Last year’s credit—available for first-time homebuyers who purchased after April 8, 2008 and before the end of the 2008—is really an interest-free loan from the government. Qualifying buyers get the $7,500 credit when they file their 2008 returns, but then have to repay the credit, $500 to the IRS each year between 2010 and 2025.
For 2009 buyers, the credit really is a credit: It doesn’t have to be repaid. (One exception: You have to pay back the credit if you sell the house within three years of buying it.)
You could qualify - even if you've owned before
You don’t really have to be a first-time homebuyer to qualify. The law defines a first-timer as anyone who hasn’t owned a home in the previous three years. If you buy anytime before December 1, 2009 you can claim the credit on your 2008 tax return.
There is an income limit on this break—both for 2008 and 2009 purchases. The right to use the credit is gradually phased out as Adjusted Gross Income (AGI) rises from $75,000 to $95,000 on a single return, or $150,000 to $170,000 on a joint return. (AGI is basically taxable income before subtracting your personal and dependent exemptions, and your standard or itemized deductions.)
Getting your money
Qualifying taxpayers claim the credit (10 percent of the house price up to a maximum of $7,500 for 2008 buys or $8,000 for 2009 purchases) on their tax returns (Form 5405).
This should put money in your pocket within weeks of the time you file your tax return. If you owe more tax with your return than your credit amount, it will instantly reduce your tax bill dollar-for-dollar. If you owe less than your first-time homebuyer’s credit, you’ll get the balance as a tax refund.
Filing your return electronically and having the refund direct-deposited to your bank account is the fastest way to get your money.