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First-Time Home Buyer Tax Credit Extended!
Plus New Credit for Current Homeowners
- New Deadline for First Time Home Buyers
- The deadline for First Time Buyers to purchase a principal residence has been extended to April 30, 2010. Eligible purchasers can receive a credit of 10% of the purchase price up to $8,000.
- The deadline for First Time Buyers to purchase a principal residence has been extended to April 30, 2010. Eligible purchasers can receive a credit of 10% of the purchase price up to $8,000.
- To Qualify
- You must not have owned a principal residence for three years
- You must have a ratified contract to purchase your new home by April 30, 2010 and close no later than June 30, 2010.
- Income Limits:
- Single taxpayers earning up to $75,000 and married taxpayers filing a joint return earning up to $150,000 can qualify to receive the full credit.
- The credit is phased down for those earning more than $75,000 for single taxpayers or $150,000 for married taxpayers. No credit is available for those earning more than $95,000 (single) or $170,000 (married).
- Single taxpayers earning up to $75,000 and married taxpayers filing a joint return earning up to $150,000 can qualify to receive the full credit.
- You must not have owned a principal residence for three years
- New Tax Credit for Current Homeowners
- Current homeowner can qualify for the new tax credit up to $6,500 for the purchase of a new home.
- Current homeowner can qualify for the new tax credit up to $6,500 for the purchase of a new home.
- To Qualify for the New Tax Credit
- You must have lived in your current property as your principal residence for five consecutive years of the previous eight years.
- You must have a ratified contract to purchase your new home by April 30, 2010 and close no later than June 30, 2010.
- Income Limits:
- Single taxpayers earning up to $125,000 and married taxpayers filing a joint return earning up to $225,000 can qualify to receive the full credit.
- The credit is phased down for those earning more than $125,000 for single taxpayers or $225,000 for married taxpayers. No credit is available for those earning more than $145,000 (single) or $245,000 (married)
- Single taxpayers earning up to $125,000 and married taxpayers filing a joint return earning up to $225,000 can qualify to receive the full credit.
- You must have lived in your current property as your principal residence for five consecutive years of the previous eight years.
- A Tax Credit is Better Than A Tax Deduction
- Tax credit is subtracted directly from your tax liability. If the tax you owe is less than the credit, you will receive a refund check for the difference.
- Tax credit is subtracted directly from your tax liability. If the tax you owe is less than the credit, you will receive a refund check for the difference.
- What do I Have to Do to Receive the Credit?
- If the purchase of your new home qualifies for the First-Time Home Buyer Credit or the Current Homeowner’s Credit, simply complete the proper forms on your federal income tax return.
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This material is provided only as general information and is not to be considered legal or tax advice. Before taking action with regard to this information, you should consult with a qualified tax advisor.
