| Do not wait to buy your first home as the first time | | | | you receive that just like you do your regular refund. |
| home buyers stimulus is only valid for this year. In | | | | What a great short term perk for buying your first |
| President Barack Obama's' Economic recovery plan, | | | | house! Of course when you become a first time home |
| he has allotted $8,000 tax credit for anyone to | | | | buyer you will learn that a lot of what you pay for in |
| purchase their first house during the 2009 year. | | | | conjunction with your home is tax deductible. Which will |
| This credit will be available in the 2009 tax year and | | | | lower the overall tax liability year after year. This is a |
| this means that when you file your taxes next year | | | | win situation for the first time home buyer. Considering |
| for this year you get an $8,000 credit. Do not confuse | | | | all the foreclosures available at great prices, purchasing |
| this credit with a deduction. When you receive a | | | | a home is a very wise move and will make your good |
| deduction, your overall taxable income is reduced | | | | fortune carry into next year when you receive your |
| $8,000. So if you make $40,000 your taxable income | | | | $8,000 stimulus in your tax refund. |
| would be reduced to $32,000. | | | | Also taking place are short sales where a property |
| This is not the case with this stimulus. A tax credit, | | | | sells for less than what is owed on the property and |
| which is this year's incentive, is like a child care credit, it | | | | the resident cannot afford to keep the home. Rather |
| does not reduce your overall taxable income. It adds | | | | than let the home go into foreclosure, a lender might |
| to the amount you paid to the government like your | | | | allow a home to sell under the loan price to make sure |
| federal withholding. So if you get paid $40,000 a year | | | | they get the majority of the money owed on the |
| in income, and say this year you owe $2500 in federal | | | | home. Whether you buy a foreclosure, a short sale, or |
| taxes, you take the $2500 out of the $8,000 and you | | | | the home of your dreams, now is the time to take |
| get a $5500 refund! If you are owed a refund for | | | | advantage of the First Time Home Buyers Stimulus |
| 2009 of $1000, this first time home buyer credit adds | | | | program. |
| to your refund and now your refund will be $9,000 and | | | | |