News & Events
08/24/2009
First Time Home Buyers Tax Credit
All Locations
The credit:
- Applies to purchases that close after April 8, 2008, and before December 1, 2009.
- Applies only to homes used as a taxpayer's principal residence.
- Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
- Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
The credit is claimed using Form 5405.
For 2008 Home Purchases
The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.
For 2009 Home Purchases
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before December 1.
For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.
For more information and to see if you qualify for a first time home buyer's tax credit, talk to one of our qualified mortgage loan originators listed below:
Donna Potts at Citizens State Bank, 354-8471
Laura Cavins at First American Bank, 882-4528
Pam Krygielka at First State Bank, 547-7025
Sheila Tempel at First State Bank, 547-7025 or 649-2218
Therese Volz at German American Bank, 482-1314
Eric Headley at Peoples Bank, 254-4630 or 295-2624
Sharon Huber at Stone City Bank, 279-6604
Keith Trueblood at German American Bancorp, Bloomington, 332-1805