How will stimulus plan affect you?

— -- As economists and policymakers brawl about whether President Obama's economic stimulus plan will help the moribund economy, regular folks have a more basic question: What's in it for me? In this week's Your Money, we'll answer readers' questions about the $787 billion bill signed into law last week.

Q: Who qualifies for the $8,000 credit on the purchase of a new home?

A: You must be a first-time home buyer, which the law defines as someone who hasn't owned a primary home for three years prior to the home purchase.

If you haven't owned a home for the past three years but your spouse has, neither of you qualifies, says Rob Dietz, director of tax issues for the National Association of Home Builders.

You must also purchase the home between Jan. 1 and Dec. 1. Taxpayers who purchased a home in 2008 are eligible to claim a $7,500 credit, but that credit must be repaid over 15 years. The new credit doesn't have to be repaid as long as you stay in your home for three years.

Q: I'm buying a new home from a builder. Will I qualify for the credit?

A: Yes, as long as you close on the purchase between Jan. 1 and Dec. 1, says Bill Killmer, executive vice president for the NAHB.

If you're building the home yourself — for example, you've hired a contractor to build a home on a lot you already own — the date of purchase is defined as the date of occupancy, Killmer says. So to qualify for the credit, you'll need to move into your home by Dec. 1.

Q:I'm planning to buy a home for $50,000. Will I get a tax credit for $8,000?

A: No. The credit is equal to 10% of the home's purchase price, up to a maximum of $8,000. So your credit would be limited to $5,000.

Q:Do I have to wait until next year to claim the credit and get a tax refund? I need some patio furniture now.

A: The law allows taxpayers who purchase a home in 2009 to treat it as if it occurred on Dec. 31, 2008 and claim the credit on their 2008 tax return, Dietz says.

If you've already filed your 2008 tax return — or buy a home after you file your 2008 taxes — you can file an amended return and claim the credit, Dietz says.