The $787 billion stimulus package passed in February included a new $8,000 tax credit for first time home buyers, in addition to the $400 tax credit per worker. Can you claim it? The First-Time Homebuyer Credit Form 5405 from the IRS helps answer some of the questions regarding eligibility for the credit (or not), and is also the form you would fill out and file with your taxes in order to submit the claim at tax-time.

Who is Eligible?

While it seems that you should be eligible for a first time home buyer credit as long as you buy your first home, like anything else there are conditions to the eligibility for the $8,000 credit.

If you are buying your first home (to be your primary residence) after April 8, 2008 and before December 1, 2009, and you meet the other conditions for eligibility – your home purchase qualifies. However, the credit for homes purchased in 2008 is $7,500 – and homes purchased in 2009 receive the $8,000 tax credit. If you’re married, neither you or your spouse can own any other main home during the 3 year period prior to the date of your purchase. If you’re building a home, the day of “purchase” is the day you start living in the home. Continue reading →