The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000
for qualified first-time home buyers purchasing a principal residence on or
after January 1, 2009 and before April 30, 2010. A first-time home buyer is defined a someone who
has not owned a home as their primary residence in the last 3 years. There are now also
tax credits available for repeat home buyers up to $6,500.
Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home - new or resale - are eligible for the tax credit.
To qualify for the tax credit, a home purchase must occur on or after
January 1, 2009 and before April 30, 2010. For the purposes of the tax credit,
the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
Repeat home buyers are elligible for a tax credit up to $6,500.
They are elligible if they owned a home for 5 of the last 8 years.
See the video below for more information.
Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers
filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income
(MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return.
