Talk to your tax advisor!

If you are a first time home buyer or haven’t owned a home in the last 3 years, you may be eligible for a tax credit (not a deduction, a credit against any tax owed). The credit is 10% of the purchase price not to exceed $8000 for a purchase used as your principal residence and if you plan to stay 3 years at least. There are income limits – up to $75,000 for single buyers and $150,000 for joint filers. The credit is pro rated for incomes of $95,000 (single) or $170,000 (joint) and above that, there is no eligibility for the credit.. This credit is for homes purchased between January 1, 2009 up to December 1, 2009. If you have purchased a home this year, you can apply the credit to your 2008 or 2009 returns. If you have already filed your return this year, you can file an amended return to claim the credit. If you prefer to wait until 2009, you can always lower your withholding for the rest of the year to reflect the credit you are due.