Buy a first home and earn a tax credit of up to $8,000. This provision of the 2009 American Recovery and Reinvestment Act, the “stimulus” bill, can put $8,000 in your pocket to help pay for your new digs. Better yet, under legislation signed into law in November 2009, the credit has been expanded and made easier to qualify for.
As a result, if you would otherwise get an average-size refund when you file your 2010 tax return—about $2,800—qualifying to claim this new credit would boost your refund to more than $10,000. Even better, unlike the $7,500 tax credit available for Americans who bought their first home in 2008, this new version does not have to be repaid.