Curious about the $8,000 home tax credit for first-time homebuyer? If you’re in the position to claim this tax credit, you’ve most likely read plenty about it. The gist is simple, homebuyers who purchased a home in 2008, 2009 or 2010 may be able to take advantage of the first-time homebuyer credit. This home tax credit:
- Applies only to homes used as your principal residence.
Reduces your tax bill or increases your refund, dollar for dollar.
Is a fully refundable tax credit, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
Checkout this one minute and 29 seconds video by Hector from the IRS explaining the first-time home buyer tax credit. If you don’t want to watch the video, a summary of the highlights can be found below the video.