Hello and welcome to Money Girls Quick and Dirty Tips for a richer life.

I'm your host, Laura Adams.

This show is about a new and different type of tax credit

that's available to certain first-time homebuyers.

The IRS is offering a new tax credit, but pay attention because it's a limited time offer.

It applies to first time home purchases completed after April 8th of 2008 and before July 1st of 2009.

The credit only applies to your primary residence, vacation homes, rental properties, and homes outside the United States don't qualify.

If you built a home, the first date you occupied or will occupy the property is considered your purchase date. So if you have a qualifying new home or

condo or planning to purchase one before July 1st, don't miss out. Even though it's called

the first time homebuyer credit, guess what?

You still qualify for it even if you've owned a home in the past.

You actually qualify as a first-timer if you did not own a home for three years prior to making a purchase

during the qualifying period.

Again, the qualifying period is from April 8, 2008 to July 1st, 2009.

Tax credits are great because they reduce your tax liability dollar for dollar.

The first-time homebuyer credit is even refundable, which means it increases any refund you're owed.

So you can take full advantage of this credit whether you owe tax or not.

The credit must be claimed on IRS form 5405. You'll find a link to this

document in the show notes at moneygirl. Quick and dirty tips.com. You're allowed to claim a credit for 10% of the purchase price of a qualifying home.

The maximum credit is $7,500 for taxpayers filing as singles, heads of household, or married couples who file joint

returns.

For married people who file separate returns, the maximum credit is $3,750.

...