UPDATE!!!
Congress has passed, and President Obama has signed, legislation to
extend and expand the homebuyer tax credit.
The agreement on the extension and expansion of the credit is as follows:
The credit is available for homes purchased before May 1, 2010.
Prospective purchasers with binding contracts in place as of April 30,
2010 will be allowed an additional 60 days to complete the transaction.
The credit amount remains at $8,000 for first-time purchasers. There was
no change to the definition of a first-time purchaser.
There is a new $6,500 tax credit for current homeowners who purchase a
new or existing home between November 6, 2009 and April 30, 2010. Repeat
buyers must have lived in their homes consecutively for 5 of the previous
8 years.
Income limits for first-time and repeat buyers are expanded to $125,000
on a single return and $225,000 on a joint return. The credit decreases
for single buyers who earn between $125,000 and $145,000, and for couples
earning between $225,000 and $245,000. Home buyers earning more than the
maximum qualifying income -- over $145,000 for singles and over $245,000
for couples -- are not eligible for the credit.
New anti-fraud limitations are imposed.
$8,000 First Time Home Buyer Tax Credit at a Glance
The information on this page pertains to the
American Recovery and Reinvestment Act of 2009.
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The tax credit does not have to be repaid.
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The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
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The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
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Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
Frequently asked questions
about the Home Buyers Tax Credit
First-Time Home Buyers Tax Credit - Modifications
February 2009