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Mortgage Tax Rebate Question .?

Hi, I bought a house in oct of 2008 in nashville, tn with a FHA loan. I am a full-time student, single, and still on my parents insurance. My income is less than 30k. Am I still eligible for the $7500 tax rebate? Thanks

Yes you are eligible.

The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before January 1, 2009.

The tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

An idea – because it is an interest free loan you can use the money to improve your home and increase the value for later sale or maybe pay down your loan to save interest in the long run. Even though it is a loan I would still claim the credit by filing a 1040x amended return, because this is still a good “deal” there are a lot of investments you can make with the money to more than justify the loan.

Here are all the FAQ about the credit – http://www.federalhousingtaxcredit.com/faq.php#1

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