I bought my first home on January 16, 2009. How much of a tax credit can I claim?

I bought my first home on January 16, 2009. How much of a tax credit can I claim?

The new law increased the tax credit for homes purchased after December 31, 2009, and before December 1, 2009, to $8,000; the credit amount had been $7,500 for homes purchased last year. Home buyers who purchased their first homes last year must repay the credit to the federal government over 15 years (there are some repayment exceptions). Those who buy in 2009 do not have to repay the credit amount unless they sell the home within 36 months. The credit, however, can be claimed only by those with modified adjusted gross income (MAGI) below set amounts. The credit phases out for singles with MAGI between $75,000 and $95,000, or for joint filers with income between $150,000 and $170,000.

You can elect to treat your 2009 purchase as having been made on December 31, 2008. This will allow you to claim the credit on your 2008 income tax return. However, you’d be limited to the $7,500 credit amount (although you would not have to repay the credit as long as you own the home for at least 3 years).