Home Buyer Tax Credit

Part of the stimulus package of the home buyer' tax credit. This credit is intended to help home buyers with a credit to be applied on their taxes.

Example - If your normal tax refund check is $1,000 and you purchase a home, following the rules below your tax refund check will be $9,000. A tax deduction reduces a filer’s adjusted gross income. A tax credit is deducted from the amount of federal taxes owed by a taxpayer.

The homebuyer tax credit is part of the Housing and Economic Recovery Act of 2008-2010. It was created to encourage homebuyers to purchase homes despite a precarious economy and housing market.