Am I Eligible for the First-Time Home Buyer Tax Credit?

Reader Question: My wife and I bought a home in November of 2007. Are we eligible for the first-time home buyers credit? We meet all the other requirements besides the date requirement.

We are not involved with the tax credit program for first-time buyers, so there's no way I can say whether or not you're eligible. I would guess you're not eligible, because the guidelines state that the credit is retroactive for purchases made after April of 2008. Since you bought your home several months before that, I'm not sure that you'll be eligible for the first-time home buyer tax credit.

Of course, it couldn't hurt to apply for it, even if you don't get very far. The time window is not the only requirement though. There are also income criteria for the tax credit. People with an annual gross income under $75,000 would qualify for the full credit amount (if they meet all other requirements). Individual home buyers who make more than 95K a year, or couples who make more than 170K on a jointly filed tax return, would not be eligible for the program.

It's also worth nothing that it's not an actual "credit," in the true sense of the word. It's more like a no-interest loan. Most people don't realize you have to pay the full amount back, but you do. Anyone who claims this credit on their taxes must pay it back in annual installments, starting the second year after you get the credit.

You can get the full details of this program in this section of the IRS website.