Up to $8,000.00 in tax credit on your federal income tax can be give to first time home buyers.

Homes must be purchased between January 1, 2009 - Decemeber 1, 2009.

To qualify, the purchaser or his/her spouse, must not have owned a residence during the 3 year period prior to the purchase. Qualified properties include single family homes, townhomes, condo's and co-ops.

The maximum credit amount of $8,000.00 is determined by the price of the home. A credit of 10% of the pruchase price up to $8,000.00 is the max.

Buyer's income will also be a factor - for singles a max of $75,000 and for married couples, the max income is $150,000.00.

If the income exceeds these limits, some Buyers will still be eligible with limitations.

The tax credit does not need to be repaids if the home is occupied by the Buyer for at least 3 years or more. If the property is sold during the 3 year period, then the credit will be re-couped at the time of sale.

As always, check with your tax professional for your own personal situation.