Federal and GA Tax Credits – How Do They Differ?
In an effort to reduce the excessive inventory of homes, the federal government and some local governments have put wonderful incentives in place to encourage buyers to buy homes now. In this article, we will discuss the $8,000 Federal tax incentive and the $1,800 Georgia tax incentive. There are some similarities, but there are differences that need to be pointed out for the Georgia home buyer. $8000 Federal Tax Credit 1. Tax Incentive: Homes purchased for $80,000 or more are eligible for the full $8,000 credit. Homes that cost less than $80,000, will be eligible for 10% of the purchase price. So a home that cost $60,000 will be eligible for up to $6,000. 2. Eligibility: First time homebuyers, or anyone who has not owned a home in the past 3 years, are eligible. 3. Income Restrictions: Individuals filing as Single or Head of Household can not make more than $75,000. Married couples filing jointly can not exceed $150,000. 4. Tax Benefit: Dollar for dollar, the tax credit will reduce in
