First-Time Home Buyers
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Qualifying for First-Time Home Buyer Tax Credits
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Qualifying for First-Time Home Buyer Tax Credits
Are you considering purchasing your first home but feeling overwhelmed by the financial implications? You’re not alone! Many first-time homebuyers are unaware of the tax credits and incentives available to them. Join our discussion forum, where we break down the process and share valuable information on qualifying for first-time homebuyer tax credits.
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8 Replies
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Can you tell us more about this tax credit?
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This first-time homebuyer tax credit is like a special deal from the government to help people buy their first home. When you pay your taxes, if you’re eligible for this credit, it means you get to pay less money to the government. It’s kind of like getting a discount on your taxes just because you’re buying your first house!
Now, who qualifies as a first-time homebuyer? Well, it’s not just for people who have never owned a home before. Even if you’ve owned one in the past but it’s been a while, you might still qualify. But there are some rules about things like how much money you make and how expensive the house is that you want to buy.
It is also different from just getting a deduction on your taxes. With a deduction, you pay less tax because you’re subtracting some things from your income. But with a tax credit, you pay less tax directly – like getting a bigger discount!
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I bought my first home back in 2013 and haven’t claimed it on my taxes yet. I found a link on the IRS site but looks like it’s dated—seems to be no longer supported. I called the number and seems like that department isn’t available. Is there some other kind of tax credit form available for first time home buyers?
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Unfortunately, nope.. the first-time homebuyer tax credit was only available for home purchases made between 2008 and 2010. So, if you bought your home in 2013, you wouldn’t qualify for that specific tax credit.
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I think it is now called the DASH act, and it’s something I’m trying to take advantage of as well. I haven’t put enough time into figuring out how to claim it but I’m pretty sure that’s what you’re referring to. If you find more info on how to apply pass it on!
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The federal government hasn’t provided a “first-time homebuyer credit” for federal taxes since 2010. Despite discussions about reinstating it, Congress hasn’t approved any proposals. If you saw information about it on the IRS website, it likely referred to the credit available from 2008 to 2010.
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I’ve also heard about this DASH act. The suggested tax credit of 10% of the purchase price up to $15,000 is only a proposal and hasn’t been put into effect. In 2008, Congress approved a law allowing a tax credit of $8,000 for first-time homebuyers. Some members of Congress have been attempting to reintroduce a similar credit since 2021, but it hasn’t progressed much, partly due to concerns about worsening inflation, and this year due to the debt ceiling.
If it does happen to become law, it’s unlikely to apply retroactively, so it’s best not to count on it.
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There is no more first time homebuyer credit.
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