Homebuyer Tax Credit

Thanks to the newly extended and expanded homebuyer tax credit, first-time homebuyers may still qualify for an $8,000 tax credit and existing homeowners may qualify for a $6,500 tax credit when they buy a new home. That’s a guaranteed federal tax credit that directly reduces the amount of taxes you owe for the entire year. Even if you have little or no federal income tax liability to offset, you may be able to claim the full $8,000 or $6,500 as a refund.
You may qualify for the newly extended $8,000 federal tax credit if*:
You are a first-time buyer or have not owned a home for the past 3 years
You make $225,000 or less if filing as a couple ($125,000 or less if filing single)
You enter into a written contract for sale before May 1, 2010 and close on the new home before July 1, 2010
You don’t sell the home within 3 years of closing
You use the new home as a principal residence, which can be a single-family home, condominium or townhome
The purchase price of the home is $800,000 or less and you did not buy it from a lineal ancestor or descendent
You are not claimed as a dependent on someone else’s tax return
You may qualify for the newly expanded $6,500 federal tax credit if*:
You are an existing homeowner who has owned and lived in your home for any 5 consecutive years out of the last 8 years
You make $225,000 or less if filing as a couple ($125,000 or less if filing single)
You enter into a written contract for sale before May 1, 2010 and close on the new home before July 1, 2010
You don’t sell the home within 3 years of closing
You use the new home as a principal residence, which can be a single-family home, condominium or townhome
The purchase price of the home is $800,000 or less and you did not buy it from a lineal ancestor or descendent
You are not claimed as a dependent on someone else’s tax return