The Housing and Economic Recovery Act of 2008 established a tax
credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.
For home purchased in 2009, the credit does not have to be paid back
unless the home ceases to be the taxpayer's main residence within a
three-year period following the purchase.
First-time homebuyers who purchase a home in 2009 can claim the
credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax
return, due April 15, 2010. The credit may not be claimed before the
closing date. But, if the closing occurs after April 15, 2009, a
taxpayer can still claim it on a 2008 tax return by requesting an
extension of time to file or by filing an amended return.