Tax Credit Extension and Expansion is Approved!

Learn How the Home Buyer Tax Credit Can Benefit You

The $8,000 first-time homebuyer tax credit is extended

Now, qualified first-time home buyers would receive their $8,000 tax credit if they sign a purchase contract by April 30, 2010 and close by June 30, 2010
The home purchased must be their primary residence
Buyer cannot have owned a home during the past three years
Tax credit is up to 10 percent of the home's value (not to exceed $8,000)
Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers). Partial tax credit can be granted for incomes up to $145,000 for single filers / $245,000 for joint filers
Buyers don't need to repay the tax credit if they occupy the home for three years or more
Members of the military who are serving overseas on "official extended duty" for a least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of the credit

New $6,500 tax credit for current homeowners purchasing a primary residence

Eligible home buyers must have lived in their current home for five consecutive years of the past eight years
The new home's cost need not exceed the current home
Eligible for homes with purchase agreements written by April 30, 2010 and that close between Nov. 6, 2009 and June 30, 2010
Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers). Partial tax credit can be granted for incomes up to $145,000 for single filers / $245,000 for joint filers
Buyers don't need to repay the tax credit if they occupy the home for three years or more
Members of the military who are serving overseas on "official extended duty" for a least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of the credit

To learn more about obtaining the tax credit, visit the Frequently Asked Questions and Tax Credit Changes Comparison Chart.

To obtain forms to claim your tax credit, see this information from the IRS.

For further information about eligibility requirements and limitations, visit www.irs.gov or www.FederalHousingTaxCredit.com.

This information is deemed reliable, but is not guaranteed. This information is subject to change without notice.

1. Consult a tax advisor for details about your specific situation. This information is not intended to provide legal advice, tax advice, accounting services, or investment advice, nor should it be relied on for legal advice. Please seek the advice of your own legal counsel.