Is There A First-Time Home Buyer Tax Credit?
Author:
Kevin GrahamDec 9, 2024
•4-minute read
As a first-time home buyer, you might be wondering what, if any, financial incentives exist to help you make the most of this significant purchase.
While there isn’t a first-time home buyer tax credit currently in place, several programs exist at the federal, state and local levels that you can take advantage of when you purchase your first home.
In this article, we’ll cover what a first-time home buyer tax credit is as well as the history and current status of this type of credit. We’ll also look at a variety of tax deductions and programs that are currently available to assist first-time home buyers.
What Is A First-Time Home Buyer Tax Credit?
Before you can understand what a first-time home buyer tax credit is, it’s important to understand what tax credits are and why they exist. According to the Internal Revenue Service (IRS), a tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe. The government uses tax credits to incentivize taxpayers to do certain things, such as buy a home.
About 14 years ago, a tax credit of up to $8,000 was available to those who were purchasing their first home. While several similar bills have been proposed by lawmakers in recent years, nothing has been passed int