Tax Deductions For New Home Owners

Calling all first time home buyers! Did that get your attention? How does an $8,000 tax credit sound? It really doesn’t have to be the very first home you ever bought.

If you haven’t owned a principal residence in the past three years, then you qualify. You must have signed a binding contract to buy a principal residence by April 30, 2010 and must close on or before June 30, 2010.

Higher Incomes Brackets For Home Buyers

If you happen to have a higher income you may or may not qualify for the tax credit. For homes purchased after November 6, 2009, the new law raises income limits. If you have an adjusted gross income up to $125,000 for singles and up to $250,000 for joint filers, then the full credit is available for you. The IRS has a revised Form 5405 for you to fill out to claim this credit on your 2009 tax return.

How to File the Tax Return

There is one tricky part. If you do purchase the new home and attach the revised Form 5405, then you cannot file electronically. You must send in a paper return. If your home is $800,000 or more you will not qualify to claim this new homeowner tax deduction. You do have to be eighteen years or older and if you’re married only one of you needs to be eighteen.

To Buy or not to Buy a New Home

Don’t run out and buy a home if you can’t afford it though. This is a great tax deduction for new homeowners but, be smart about it. There are a lot of ways to get some money into your pockets or keep some of the money you already have in your pockets. Have you ever considered using an online software tax preparation company? If you haven’t, you should.

Online Tax Preparation Software

You will be pretty surprised at how efficient online tax preparation is now. If you know how to look at a picture and click a mouse, you can file your tax return online. You are already reading this on a computer right? If you’re looking for tax deductions you’ve come to the right place.

TurboTax Online will search your tax return for over 350 tax deductions. You are guaranteed the biggest refund possible or least tax owed. I have only mentioned one of the many benefits waiting for you! To discover the other top reasons to use TurboTax Online visit their web site today!