Qualified home buyers can receive a true tax credit of 10% of the purchase price, with a maximum credit amount of $8,000. So if you buy a home for $80,000 or more, you can deduct the full $8,000 tax credit. If you usually get a refund on your taxes and you qualify for the maximum tax credit you can add another $8,000 to that refund for 2009.

Only first time home buyers can get this tax credit.
*defined as not owning a home over the past three years.

Other qualifications:

The home must be your principal residence and only homes purchased on or after January 1, 2009 and before December 1, 2009 qualify for the tax credit. Limited to individuals with adjusted gross incomes of $75,000 as a single person or $150,000 filing jointly. There is a phase-out for single incomes between $75,000 and $95,000, and for couples filing jointly with incomes between $150,000 and $170,000. Unlike the 2008 $7,500 home buyer tax credit, the $8,000 tax credit this is not a loan and doesn't have to be paid back.

Important: if you sell that home within the first 3 years you fill owe the full
deduction to the IRS