Fidelity First Funding

If the mortgage interest, property tax, and slew of other homeownership tax
deductions weren't enough, Congress has added yet another
homeownership incentive: A dollar-for-dollar tax credit of $8,000 when you
purchase a home. Want to know if you qualify? Here's an overview of this
newest tax break:

AMOUNT OF CREDIT
Ten percent of the cost of the home, not to exceed $8,000.

ELIGIBLE HOME BUYERS
Home buyers (including spouses) who have not owned a principal
residence in the three years prior to the purchase. Those who do not own
their principal residence but own a vacation home or other property also
qualify for the credit if they are purchasing a principal residence.

ELIGIBLE PROPERTIES
Any single-family home, town house, condominium or co-op that will be
used as a principal residence.

INCOME LIMITS
Taxpayers with adjusted gross incomes of up to $75,000 for singles and
$150,000 for couples qualify for the full credit. A partial credit is available to
taxpayers who make more than those amounts, not to exceed $95,000 for
singles and $170,000 for joint filers.

QUALIFYING DATES
The credit is available to those who purchase a home after Jan. 1, 2009,
and before Dec. 1, 2009.

REFUNDABLE
The credit will reduce any tax liability owed for the year. If there is excess,
the money will be refunded. For example, if you owed $1,000 in taxes and
used the $8,000 credit, you could receive a rebate check of $7,000.

RECAPTURE
There is no repayment for purchases made after Jan. 1, 2009, and before
Dec. 1, 2009. However, if the home is sold before three years, the entire
amount is recaptured upon the sale.