Have you already purchased a home this year, or plan to sometime in 2009? If so, there is some good news. The American Recovery and Reinvestment Act of 2009 has a tax credit of up to $8,000 for first-time home buyers. This was done in part to help stimulate the housing market, but if you were already in the market for a home anyway, it may provide tremendous tax relief to you as well.
Even though this is a significant tax credit, you have to be careful and make sure you're buying a house for the right reasons rather than buying a house for the sake of getting a tax credit. In some situations it may still be cost-effective to rent or wait before purchasing a house, so consider your situation carefully. In addition, while the tax credit generally doesn't have to be paid back, if you were to move or sell the house within three years, you might be on the hook to have some or all of that credit recaptured. So as always, careful planning is key. Take advantage of the credit if you qualify, but make sure you aren't putting your long-term financial plan in jeopardy by jumping into a home purchase too soon.