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First-Time Homeowner Tax Break in the Stimulus Bill

First-time home buyers will catch a tax break this tax season with the passage of the stimulus bill on Tuesday. According to The New York Times, “First-time home buyers are eligible for a refundable tax credit equal to 10 percent of the purchase price of their home, up to $8,000, if they made the purchase after Jan. 1, 2009 but before Dec. 1, 2009.” This credit does not have to be paid back and does not apply for individuals who make more than $75,000 and married couples with incomes over $150,000. The credit is also revoked if the house is sold within three years.