New for 2009 Tax Year: Home Buyer’s Tax Credit

It’s almost tax season again, and you know how I can tell? I received my tax package in the mail yesterday. Being the numbers nerd that I am (I get excited about doing my taxes), I had to open it up and flip through the tax guide to get an idea of what kinds of credits, etc. that I would qualify for in the 2009 tax year. Something that was highlighted in the package is a new program for 2009 and subsequent tax years that I wasn’t aware of: the Home Buyer’s Tax Credit.

Basically, you’re eligible for the Home Buyer’s Tax Credit if you’re a first time home buyer (or haven’t lived in a home you own for the tax year and the past four years) and purchased your new home after January 27, 2009. The credit is a flat $750 for 2009, as it’s calculated by multiplying $5,000 by the lowest personal income tax rate for the year. If tax rates go up in the future, it’s safe to assume that the credit will, as well.

Since I purchased my first home this year, as I’m sure many of you have, I’ll be getting that $750 credit from the government. Thank you, Canada!

To read more about the Home Buyer’s Tax Credit, please visit the Canada Revenue Agency’s webpage here.