Tax Credit

There has been a lot of talk about the tax credit for "first-time homebuyers". Here are a few of the details.

1. First-time homebuyer
2. Home must be purchased between April 9, 2008 - July 1, 2009.
3. Must be a principal residence

The credit is equal to 10% of the home purchase price capping out at $7,500. This "credit" is essentially an interest free loan from the government. I say that because it MUST be re-payed over the next 15 years. You pay it back either from your refund or by paying more taxes ($500 per year). There are also some income restrictions. If you make more than $95,000 (single) or $170,000 (married), then you get no credit at all. At $75,000 (single) and $150,000 (married) the tax credit begins to decrease. All of this is based on your modified adjusted gross income.

Please check out this link for a lot more information about this tax credit.

Financial Health Quiz...

1. What % of your income do you save each month?
a. 10%
b. less than 10%
c. none

2. How many times during the past 6 months have you paid a bill late?
a. 0
b. 1-5
c. 6+

3. How many credit/store cards do you have?
a. 0-3
b. 4-6
c. 7+

4. Without your main source of income, how long can you meet your financial obligations?
a. 3 months
b. 1-2 months
c. less than 1

5. How would you come up with cash quickly?
a. savings
b. credit
c. establish new credit/borrow from family

6. How often do you budget?
a. Always
b. Sometimes
c. Never

7. Most purchases are...
a. planned and saved for
b. needs based
c. spontaneous

8. When you think about finances you are...
a. completely at ease
b. moderately concerned
c. very concerned

a = 1
b = 2
c = 3

1-10 points = you are doing great
11-15 points = you are on track...need a little tweaking
16-21 points = you are in need of some help
21+ points = you need to call me ASAP!