In November of 2009 the program was extended because so many Americans did not take advantage of the credit.  Despite the economy looking better, there is still a national decline in the housing market. The first time homebuyer’s credit is an incentive to encourage potential homeowners to take advantage of the credits that are available.  The deadline for the credit has been extended but the clock is ticking quickly. 

Criteria to qualify for the first time homebuyer’s credit:

• You have to be a first time homebuyer of a principal residence. Your principal residence is considered the home where you live for the majority of the year. 

• You cannot qualify if you are listed as a depended or claimed by anyone else during the year of your home purchase. 

• You must be 18 or older to claim the credit. 

• The contract to purchase must be signed on or before April 30th of 2010.

• The home must be closed on or before June 30th 2010.

• The credit does not apply for any home that exceeds $800,000.

• The home has to be your principal residence meaning a house, condo, trailer or houseboat.  Vacation and rental properties do not qualify.

• The credit does not apply if you purchase your home from a close relative or a close relative of your spouse.

• The credit is given up to 10% of the purchase price of the home not to exceed $8,000. 

How to claim your credit:

• You cannot claim the credit until you have formally closed on the home.

• Once you’ve closed on your home you are eligible to claim your credit on your income taxes. You must ensure that you have met the criteria for the program and done so within the timeframes outlined. 

 • You can claim your credit the year following your purchase. For example; if you close in February 2010 you can claim your credit when you file your 2010 taxes in 2011. 

• You can claim the credit when you file your taxes for the following year. For example; if you purchased a home in November of 2009 and closed in December of 2009 you can claim it on your 2009 taxes. 

• If you file your taxes early and then close in 2010 on a home you purchased in 2009 you can amend your taxes to show the credit on your 2009 tax returns.

 The criteria for qualifying and the steps to claiming your first time homebuyer credit are simple and straightforward. As with any tax related information if you have questions you should consult the IRS website or your tax advisor.

The First-Time Homebuyer Credit: The Clock is Ticking was created by and is property of American Consumer News.

Educating youth on what it means to be financially informed is not on the educational curriculum list in most schools, if any at all. Given the struggling economy, the stock market crash and the job cuts; financial matters are not only in the news daily but weigh heavily on the minds of most Americans. The financial well being of the country is different than it was 20 or 30 years ago. The United States has gone from a bountiful economy where consumerism is a way of life for most, to a country and its citizens now just struggling to stay out of debt. The financial health of the country as evidenced by history, experiences cycles. The difference with the current cycle is that the more advanced we become and the more opportunities for debt that are available- the more dangerous and difficult it is for individuals to dig themselves out of a financial hole. Youth who are not equipped with the tool of knowledge to make informed choices about their personal finances could find themselves in great financial crisis to the point of bankruptcy that can affect their future.

Youth today have no formal training in the area of finances. For many kids today their parents also lack either the knowledge or economic stability to provide direction for their children in the area of personal finance. Many Americans have found themselves in financial distress at one time or another. Youth face a number of factors that have the potential to negatively affect their financial futures. Student loans costs are skyrocketing and legislation is pending for proposed changes to the entire industry. In part this legislation came about because some students can’t afford higher education and others are defaulting on student loans. Those who are able to secure educational funding have successfully graduated from college with a degree in hand only to find themselves without job prospects and mounting debt from loans and the interest attached to them. Credit cards have historically preyed on unknowing youth by offering incentives to apply for credit cards. Without reading the fine print some have fallen into the credit card trap and been left with thousands of dollar debt that have followed them well into their adult lives. There is also legislation that will become active in early 2010 that will work to tighten up the management of the credit card industry that has been historically unregulated. This legislation will work to protect future card holders but there is still a personal responsibility that comes with any type of loan or credit that must be realized. These are just a few of the common situations relating to money that make it necessary for our youth to receive training to better manage their personal finances as they reach adulthood.

There are a few creative and innovative strategies that have been in the media recently that focus on educating youth about the economy and personal finances. Visa Inc. in partnership with the Federation Internationale de Football Association, which sponsors the World Cup competitions, has developed a video game called Financial Soccer. Financial Soccer was developed using the basic methods and rules of soccer to teach youth the importance of financial responsibility. It is a computer game with varying levels that uses a series of questions that range from simple to complex depending on age. The goal is to help young people learn the financial basics and work to develop good future money habits. The U.S Treasury Department also recognized the need to education youth on finances. The KidCreditSchool.com is an online program launched in 2008 designed to provide education and training online for both kids and parents.

These are just a few of the programs that have emerged in response of the identified national need to increase education on the basics that will protect our youth from financial illness. The importance of knowledgeable and financially sound youth is essential for the financial health of the country as a whole.

Youth Need Training on Personal Finances was created by and is property of American Consumer News.