4 Year Old First Time Homebuyer?

We all know that the first time homebuyer credit has been very popular -- but so popular that a four year old would use it? A recent Wall Street Journal article reported that the Treasury Department had found at least 19,000 people who applied for the credit but had never purchased a home. The total amount of money received by these fraudulent filers was $139M. The Treasury also found that 74,000 people who claimed the credit probably owned a home within the previous two years and therefore do not qualify for the credit. The total amount paid to these people was $500M. The credit has no age restriction and more than 500 people under the age af 18 have applied for the credit -- including a four year old.

People who claim the credit when they are not entitled to it will have to pay back the credit and they may also face civil penalties. Criminal fraud charges would also be a possibility so before you file for the credit, make sure that you qualify. The credit is only available to single filers earning less than $75,000 and married filers earning less than $150,000. You are eligible if you purchased your home since April 9, 2008 and the credit is ending on November 30, 2009. To qualify as a first time homebuyer, you can not have owned a home in the previous two years. If you are uncertain about whether you qualify, consult a tax professional.