And yes, the credit is reduced or eliminated for higher-income taxpayers. For purchases on or before Nov. 6 of this year, the full credit is available for married couples filing a joint return whose modified adjusted income is $150,000 or less and for other taxpayers whose adjusted income is $75,000 or less. For purchases after Nov. 6, the full credit is available for married couples filing a joint return whose adjusted income is $225,000 or less and for other taxpayers whose income is $125,000 or less.

For more details on the credit please visit the First-Time Homebuyer Credit page on www.irs.gov. Based on the questions I'm getting, many people are confused about the credit and may be taking it when they don't qualify.

I'm often asked about saving versus aggressively paying off debt. Such was the case with the following reader, who wrote: "My husband thinks he may be laid off soon. I am wondering if I need to keep an emergency savings fund in addition to paying down my home equity credit line? I've been throwing any excess money at the home equity credit line. The credit line is for $40,000. We now only owe $16,000."

If you have debt, you should try to aggressively pay it down. But you also need to save. However, if you know your job is in jeopardy, you should stop the extra debt payments and instead stockpile cash in case the search for a new job goes on for months, which has been the situation for millions of laid-off workers. At this point, I suggest making only the minimum payment on the home equity line. Otherwise, you are likely to turn to credit, digging a deeper debt hole.

Another representative question: "What are some good alternatives to Christmas gifts?"

Give a gift certificate for a family game night or a home-cooked meal. Give an overworked mother or father, or both, a night off while you watch their kids.

Really, for many of us, what do we really need?

We need more time with the people we love and care about.

I know people love store-bought presents, but time is a great Christmas gift. The best present we can give people is our presence.