First Time Home Buyers Tax Credit

The First-time Home Buyers tax Credit (HBTC) is a non-refundable tax credit for certain homebuyers who acquire a wqualifying home after January 27,2009, that is- closing after this date.

How is the HBTC calculated?
The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15%in 2009) by $5,000.
for 2009, the credit will be $750.00 . Howerver, if the total of your non-refundable tax credits is more than your Federal Oncome tax, you will not receive a refund for the HBTC.

Who is eligible for the HBTC?
-If you or your spouse acquire a qualifiying home and
– you did not live in another home owned by you or your spouse in the year of acquisition or in any of the 4 preceding years..