This credit is available for first time home buyers and those who did not own home in last three years. The credit applies to home located in the United States.The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 (or $8,000) for either a single taxpayer or a married couple filing jointly.

If you purchased after April 8, 2008, and before January 1, 2007 then you will get up to $7,500. The credit of $7,500 is in fact interest free loan, which you must repay back.

If you purchase home after Dec 31, 2008 and before July 1, 2009, you will get up to $8,000. The credit of $8,000 is not a loan and you do not repay it.

It is a part of the tax law on form 5405. So if you meet all the rules you can claim the credit as part of your 2008 income tax return. The amount you qualify for, up to $7500, will have to be repaid over 15 years beginning in 2010 through your income tax returns.

I have linked to form 5405 below. So go ahead and file to receive the credit as part of your tax refund.

Laura H – H&R Block – Senior Tax Advisor 5
**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

I am pretty sure you could get the credit as long as only you sign for the house and close before you get married.

Are you in Australia and applying for the First Homebuyer’s Grant?

If so, you organise that when you do the loan paperwork at the bank or the brokers. It’s a form you fill out and send away when you apply for the loan. Then, it gets calculated with the loan at settlement.

If they didn’t claim it back then, I doubt they can claim it now. Their broker or lender should have advised them when to claim it.

Best wishes

Probably, but you would have to file an amended return for the previous tax year before getting married.

There is also a tax credit available for existing home owners, which is good for up to $6500, but they must have lived in the home for at least five years. So, this is something you might want to keep in mind.

Just playing Devil’s advocate, but if they purchased the house last May, I do not think they qualify. I thought it was after the Bill was passed, which was in July – I THINK… I WOULD CHECK… Good luck.

Remember, they will have to “repay” the credit for the next 15 years.

may be able to. but her name would have to come off.

They will each get up to $3750 if they file separately but both names are on the mortgage. It is based on 10% of the purchase price up to $75,000. If the house was more than $75,000 the maximum amount of the credit will be $7,500. If for instance the house was only $67,000.. they would get $6700.. (or $3,350 a piece). I suppose one of them could claim single and use a child as a deduction and the other claim head of house hold but they could also file together as married even though they are not “legally” married. My partner and I have done this for years. I have a child from a previous relationship and we file as married and he claims my son as a dependent.

Another option would be for whomever brings in the majority of the income to file as head of house hold and claim everyone as dependents.

I think its better to buy a house-I just bought one a year ago.

I use to live in Medford, MA. If you are looking to buy a home I suggest a house. A condo, you will have to buy a parking spot in some places and that is a totally different contract than your condo.

A home you can have a driveway, a small backyard, and quite. With a condo, it is like living in an apartment or a townhome, you can hear everyone else.

Be prepared, buying a home in a suburb or boston is very expensive. Homes start at about 300K and have about 2 beadrooms.

good luck