Every dollar of a tax credit reduces income taxes by a dollar.  Credits are claimed on an individual’s income tax return.  Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due.  Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill.  So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due.  ($9,500 - $8000 = $1500). *  

Visit my website at www.atlantarebaterealestate.com for all the details of the $8,000 First Time Home Buyer Tax Credit in the Metro Atlanta Real Estate market.  In addition to the First Time Home Buyer Tax Credit, there is a program with the Department of Housing and Urban Development that allows the purchase of a home with only a $100 Down Payment in the Metro Atlanta Real Estate market.  Visit my website to search for homes from the Department of Housing and Urban Development (HUD) at www.atlantarebaterealestate.com or email me at rebaterealestate@yahoo.com with any questions.  I also work on a Full Service volume model which allows me to offer a REBATE of my commission up to 50% or more depending on the price of the home you purchase with me as your REALTOR.  As always I am available by phone at (770)  530 - 9114 to answer questions and/or get you started buying your home in the 28 county Metro Atlanta Real Estate market.   

*Source:  National Association of REALTORS® Government Affairs Update First-Time HomeBuyer Tax Credit