| Tax credit amount: |
$8000 |
$6500 |
| Who is eligible to claim the tax credit? |
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. |
Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit. |
| How is the amount of the tax credit determined? |
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. |
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit. |
| What types of homes will qualify for the tax credit? |
Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family homes, townhouses and condominiums. |
| Is a tax credit the same as a tax deduction? |
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS. |
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $6,500 in income taxes and who receives an $6,500 tax credit would owe nothing to the IRS. |
