What will you do with your $8,000 First-Time Homebuyer Tax Credit?

Through the American Recovery and Reinvestment Act of 2009, first-time homebuyers (as well as those individuals who haven’t owned a home in the last three years) can qualify for a tax credit of up to $8,000.

Called the First-Time Home Buyer Tax Credit, this credit, which is paid to the homeowners when they file their federal income tax return for 2009, is eligible to homeowners who purchase their home between January 1, 2009 and December 1, 2009.

If you’re one of the lucky ones to have scored this incredible tax credit, then you’ve probably already started to wonder what you might do with your tax credit.

• Pad your emergency fund – If you depleted your savings and emergency fund for the purchase of your Jacksonville home then you may want to consider throwing your tax credit into an interest-bearing account so that it can serve as your financial life preserver, of sorts, in case the furnace decides to die or the hot water tank blows up.


• Perform home improvements – If your list of home improvements on your Jacksonville property is as long as your arm then you may want to consider using all or part of your tax credit to perform much-needed home improvements.  Don’t forget that your home improvements will increase the value of your home, too!


• Pay off debt – A great way to spend your tax credit is to pay off some of your debt. Paying off debt will free up more money each month and allow you to live more comfortably. It will also positively impact your credit score.


• Purchase furniture and appliances – New homeowners can certainly use extra money in their budget to furnish their new home, so you may want to consider purchasing new appliances, a washer and dryer or furniture for the master bedroom.

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