If you are a first-time home buyer this year, Uncle Sam wants to give you a present that could be worth thousands of dollars.

Under landmark legislation -- the American Recovery and Reinvestment Act of 2009 -- you may be eligible to receive a tax credit equal to 10 percent of the home purchase price up to $8000.
 
Washington hopes that by rewarding you for purchasing a home, it will help boost the housing market and jump-start the economy.
 
To qualify, you must close on your house purchase before Dec. 1, 2009, Also, your income must be less than $75,000 if you are single or less than $150,000 if you are married. If your 2009 income for exceeds these figures, you may still be eligible to receive a lesser tax credit.
 
As long as you live in your home for at least three years, the tax credit does not have to be repaid.
 
To claim the credit on your 2009 federal tax return, come next April, you will need to complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of  1040 income tax return.
 
The tax credit is subtracted from what the taxpayer owes. For example, a taxpayer who owes $8,000 in federal income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
 
Any principal residence will qualify for the credit. This includes single-family homes, townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.
 
Congress passed the $780 billion package in February. Roughly 35 percent of the package devoted to tax cuts.
 
To broaden the impact on the economy, first-time homebuyers won’t be the only beneficiaries:
 

• Congress’ extension of the $729,750 loan limit of FHA, Fannie Mae and Freddie Mac through the end of 2009 will benefit higher-income buyers purchasing homes in expensive neighborhoods.
• For low-income buyers needing help at closing, the act also allows state housing finance agencies to advance the credit as a loan, using proceeds from tax-exempt bonds.
• And for any homeowner who makes his house more energy-efficient by the end of 2010, the Section 25C tax credit has been raised from 10 percent to 30 percent, up to $1500