Eric Darby asked: President Obama has announced the Stimulus Package worth $ 787 billion that is meant to save people’s home and allot them new ones. This package would help the US people through grants, tax relief, state & local fiscal relief, loans, etc. As President Obama explains, ‘the stimulus bill would help the US people clear their debt levels and lead a hassle free life.’ The grants are available for all day to day requirements like food, clothing, home, education, debt clearance, etc. Out of this sum, the amount set aside for the first time home owners is $ 2 billion – $ 8 billion. These would come as grants as well incentives for the home owners. With this package, the first time home buyers can enjoy tax credits $ 8,000.
Here are some points to understand $8000 tax credits and their eligibility criteria:
. It is only available to the first time home buyers.
. Tax credit is not a loan. One does not need to pay it back. But that is subjective. In case the home is sold off with in 3 years, the $ 8,000 tax credit must be re-paid.
. Tax credit requires the home buyer’s tax liability. In case the buyer’s liability is less than $ 8,000, the remaining credit would be issued as a check.
. The home purchases must only be for a primary residence.
. It is only available for the homes that are purchased between January 1, 2009 & December 1, 2009.
. The single persons with an income of $ 75,000 or more are not eligible to get this tax credit.
. The married couples whose joint income is $ 150,000 or more, they do not qualify for this tax credit.
. The tax credit is not eligible in case the seller is the buyer’s relative.
Dustin
