Tax Credit for First-Time Buyers - The Spouse Question

Reader Question: My husband's name is on our mortgage. My name is not on the loan. Could I be eligible for first-time home buyer tax credit?

I don't believe you or your husband would be eligible for the tax credit. Within the context of this credit, a first-time buyer is defined as someone who has not owned a home (as a primary residence) within the three years prior to purchase. It also includes spouses in that definition, so you probably would not meet their definition of a first-time buyer ... even though your name is not on the mortgage loan.

I used the word "probably" in that last sentence, because this is a federal program. These kinds of programs change all the time, so don't take what I've said as gospel. For example, the tax credit used to be for an amount up to $7,500, and you had to pay it back over time (not a true credit). But under the new program, the amount has increased to $8,000 and the payback requirement has been eliminated. See what I mean? It changes all the time.

Of course, I'm not a tax attorney, so there may very well be a loophole of some kind that you can use. But I doubt it.

Related Information:

• Expanded Tax Break for 2009 First-Time Homebuyers (IRS website)
• $8,000 Tax Credit for Home Buyers (this website)

You might also want to dig through the IRS website to see what you can find on this topic. They are the ones who will oversee this program, so it would be worth your time to check there. Here are some other quotes from around the Internet:

"If you're married and your spouse has owned a home in the past three years, you don't qualify for the credit." -Source: Sandra Block, USA Today

"For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse." -Source: www.federalhousingtaxcredit.com

Hope that helps. Take care.