Good news for Jupiter Florida homeowners

Good News for New Homebuyers

The American Recovery and Reinvestment Act (ARRA) incorporated an $8,000 first-time homebuyer tax credit for 2009 home purchases. Taxpayers who have recently purchased a home or are considering buying a home, have more than a few different ways that they can receive this tax credit, even if they have already filed their tax return.

Taxpayers who qualify can buy a home between Jan. 1, 2009 and Dec. 1, 2009 and claim up to $8,000 or $4,000 for married individuals filing separately. They can even claim the credit either on their 2008 tax returns or 2009 tax returns next year. This begins to phase out at a modified adjusted gross income of more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10% of the property purchase amount up to maximum credit.

According to the Internal Revenue Service (IRS), the options of filing are as such:

File an extension. Taxpayers who haven't yet filed their 2008 returns but are thinking about buying a home soon can request a six-month extension to October 15. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.

File now, amend later. Taxpayers due a considerable refund for their 2008 tax return but who also are taking into consideration of buying a home in the next few months can file their return now and claim the credit later. Taxpayers, who will file their 2008 tax forms as usual, can follow up with a rectified return later in the year to claim the homebuyer credit. 

Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. That tax return will permit them to claim the credit on the 2008 return without waiting until next year to claim it on the 2009 return. 

Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more economic sense to wait and claim the credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. Always ask your tax accountant, preparer or a professional for specific policies on this as each individual or married couple’s situation is different. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people whose earnings are less in 2009 than 2008 because of factors such as lossof employmentor a lower amount of investment income.