8000 Tax credit formIf you’re feeling stimulated and want to get your first time home buyers’ $8000 tax credit, then you’ll need the right form from the IRS.

Form 5405 shown on the left can be used for 2008 or 2009 tax returns.

Whether the tax credit will stimulate the housing market, or the “just bought my first house and need some furniture” market remains to be seen - I’ve talked about the possible impact of the tax credit on the Austin housing market here.

One thing is for sure if you meet the following test:

  • You bought a home between 1/1/2009 and 11/30/2009
  • You haven’t owned a home before (in the preceding three years)
  • You earn less than $150,000 if married filing jointly or $75,000 if single
  • Your home cost more than $80,000

then you could be eligible for an $8,000 gift from Uncle Sam. If the home was less than $80,000 then the maximum you are eligible for is 10% of the purchase price.

Garreth Wilcock is an Austin Realtor® and EcoBroker® who helps first time buyers find homes in Austin, and can give you a FREE market analysis of an Austin neighborhood you are interested in.