If you are qulified for the tax credit and buy home in 2009, can you apply the tax credit in 2008?

Can you apply the tax credit against your 2008 tax return?

Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the ourchase occurred on Dec. 31, 2008. This means that the 2008 income limit (MAGI) applies and the elction accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns).

A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty thereby helping the buyer know whether the income limit will reduce their credit amount.