# How does the 8k first time home buyer credit work? **URL:** \ **Category:** Factual Questions\ **Created:** [June 18, 2009, 2:25am UTC](https://boards.straightdope.com/t/how-does-the-8k-first-time-home-buyer-credit-work/500135 "2009-06-18T02:25:40Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![HorseloverFat](https://avatars.discourse-cdn.com/v4/letter/h/8e8cbc/32.png) [@HorseloverFat](https://boards.straightdope.com/u/HorseloverFat)\ **Post date:** [June 18, 2009, 2:25am UTC](https://boards.straightdope.com/t/how-does-the-8k-first-time-home-buyer-credit-work/500135/1 "2009-06-18T02:25:40Z")
Ive read some conflicting information about this. Ive heard that its a taxed credit paid over a few years, then I heard it could be collected in full next year, and now I hear it can be used during the buying of a home somewhat instantly. How does this work? Is there an easy to read explanation of how this works and do banks offer an advance on it? Thanks. ---
**Author:** ![dgrdfd](https://avatars.discourse-cdn.com/v4/letter/d/eb8c5e/32.png) [@dgrdfd](https://boards.straightdope.com/u/dgrdfd)\ **Post date:** [June 18, 2009, 4:07am UTC](https://boards.straightdope.com/t/how-does-the-8k-first-time-home-buyer-credit-work/500135/2 "2009-06-18T04:07:47Z")
Here is the information I know. > [@](#): > > 1. $8,000 tax credit for buying a home. The new stimulus law will give up to $8,000 tax credit to first-time homebuyers. Unlike the previous $7,500 tax credit for first-time homebuyers, which has to be paid back in 15 years, this is a true tax credit as long as you hold the home for 3 years. The credit is still limited to people with an AGI under $75k (single) or $150k (married filing jointly). This tax credit is refundable, which means it’s not limited to your federal income tax liability. The qualifying purchase dates are between Jan. 1, 2009 and Nov. 30, 2009. So it’s not retroactive for purchases in 2008. Source: [http://thefinancebuff.com/2009/02/tax-breaks-in-stimulus-bill-for-buying-a-home-or-a-new-car.html](http://thefinancebuff.com/2009/02/tax-breaks-in-stimulus-bill-for-buying-a-home-or-a-new-car.html) So you would get it when you did your taxes next year. I believe AFTER you close, you could file an amended 2008 return and get it a few months later if you really needed it right away. There is also another way: > [@](#): > > But the tax credit can only be claimed by filing a form with the IRS once the home has been purchased. A slew of states – including Colorado, Idaho, Missouri, New Jersey and Ohio – quickly launched programs to allow people to “monetize” the tax credit, by advancing money to qualified borrowers so that they can apply the funds from the tax credit toward a home purchase. > > HUD’s announcement earlier this month that it intended to allow FHA borrowers to do something similar was met with great fanfare from the home-building and real-estate industries. But some analysts argued the policy could harm borrowers and taxpayers, citing the higher default rates of no-money-down loans popularized during the housing boom. > > Buyers Will Have Skin In The Game > > HUD on Friday said amounts advanced by FHA lenders cannot be used to meet FHA’s minimum 3.5% down payment due to a law barring such lenders from assisting borrowers with their down payments. FHA borrowers may use the money to increase the size of their down payment above the 3.5% minimum, to pay closing costs, any upfront interest charges or FHA’s upfront premium. Source: [http://legacyridgeblog.com/2009/05/30/update-on-first-time-buy-8k-tax-credit/](http://legacyridgeblog.com/2009/05/30/update-on-first-time-buy-8k-tax-credit/) That’s all I know. I would remind you I am just some random poster on the internet linking to blogs as my source for this information. If you intend on using this advice, I would highly recommend you consult a professional. [I recently posted a thread about a possible new tax credit (no law as of yet) concerning a 15k tax credit you may be interested in as well.](http://boards.straightdope.com/sdmb/showthread.php?p=11242160#post11242160) Good luck! ---
**Author:** ![Munch](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/munch/32/5281_2.png) [@Munch](https://boards.straightdope.com/u/Munch)\ **Post date:** [June 18, 2009, 12:40pm UTC](https://boards.straightdope.com/t/how-does-the-8k-first-time-home-buyer-credit-work/500135/3 "2009-06-18T12:40:38Z")
From the IRS: [http://www.irs.gov/newsroom/article/0,,id=205416,00.html](http://www.irs.gov/newsroom/article/0,,id=205416,00.html) > [@](#): > > Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year. > > The filing options to consider are: > > File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit. > File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit. > Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return. > Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income. ---
**Author:** ![OpalCat](https://avatars.discourse-cdn.com/v4/letter/o/8edcca/32.png) [@OpalCat](https://boards.straightdope.com/u/OpalCat)\ **Post date:** [June 18, 2009, 2:04pm UTC](https://boards.straightdope.com/t/how-does-the-8k-first-time-home-buyer-credit-work/500135/4 "2009-06-18T14:04:17Z")
I have a question about it, too… Who qualifies as a first time homebuyer? I just got married and I have bought a house before (bought in 2005, sold in Feb 2008) but he has never owned a house. Chances are that I would not be on the mortgage application regardless, because he has better credit than me and would get a better interest rate alone than we would together. Does his being married to me disqualify him as a first time buyer? ---
**Author:** ![Munch](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/munch/32/5281_2.png) [@Munch](https://boards.straightdope.com/u/Munch)\ **Post date:** [June 18, 2009, 2:05pm UTC](https://boards.straightdope.com/t/how-does-the-8k-first-time-home-buyer-credit-work/500135/5 "2009-06-18T14:05:57Z")
I think that if you file separately, he’d only get $4000. ---
**Author:** ![OpalCat](https://avatars.discourse-cdn.com/v4/letter/o/8edcca/32.png) [@OpalCat](https://boards.straightdope.com/u/OpalCat)\ **Post date:** [June 18, 2009, 2:37pm UTC](https://boards.straightdope.com/t/how-does-the-8k-first-time-home-buyer-credit-work/500135/6 "2009-06-18T14:37:11Z")
…and if we file jointly, he’d get squat? ---
**Author:** ![Oakminster](https://avatars.discourse-cdn.com/v4/letter/o/77aa72/32.png) [@Oakminster](https://boards.straightdope.com/u/Oakminster)\ **Post date:** [June 18, 2009, 2:43pm UTC](https://boards.straightdope.com/t/how-does-the-8k-first-time-home-buyer-credit-work/500135/7 "2009-06-18T14:43:06Z")
I closed on my house April 3, 2009. Filed my taxes on April 15, as usual. If you file the 1040, there’s a box to check if you’re claiming the credit, and then there’s another short form you have to fill out and sign. IIRC it mostly asked for the address and closing date. Got my refund in late May, including the full $8k. ---
**Author:** ![Alonzo\_John\_Blitz](https://avatars.discourse-cdn.com/v4/letter/a/85e7bf/32.png) [@Alonzo\_John\_Blitz](https://boards.straightdope.com/u/Alonzo_John_Blitz)\ **Post date:** [June 18, 2009, 8:00pm UTC](https://boards.straightdope.com/t/how-does-the-8k-first-time-home-buyer-credit-work/500135/8 "2009-06-18T20:00:28Z")
**Opal Cat** , 1st time buyers are defined as people who have not owned a home in the last 3 years. The tax credit is 10% of the sale price of the house up to $8000. So an individual can get the full amount if the price of the home is $80K and up. Here is a link that will answer all your questions: [http://www.federalhousingtaxcredit.com/2009/home.html](http://www.federalhousingtaxcredit.com/2009/home.html)