Home Buyer Federal Tax Credits

Home Buyer Tax Credits at a Glance

(It has been estimated that 70 percent of the population of the U.S. will qualify for one of these credits)

$8,000 First-time Home Buyer Tax Credit at a Glance

    * The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS 
       defines a first-time home buyer as someone who has not owned a principal residence during
       the three-year period prior to the purchase.
    * The tax credit does not have to be repaid.
    * The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
    * The tax credit applies only to homes priced at $800,000 or less.
    * The tax credit now applies to sales occurring on or after January 1, 2009 and on or before
        April 30, 2010. However, in cases where a binding sales contract is signed by April 30,   
        2010, a home purchase completed by June 30, 2010 will qualify.
    * For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the
       income limits are $75,000 for single taxpayers and $150,000 for married couples filing
       jointly.
    * For homes purchased after November 6, 2009 and on or before April 30, 2010, single
       taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000
       qualify for the full tax credit.


The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

    * To be eligible to claim the tax credit, buyers must have owned and lived in their previous home
       for five consecutive years out of the last eight years.
    * The tax credit does not have to be repaid.
    * The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
    * The tax credit applies only to homes priced at $800,000 or less.
    * The credit is available for homes purchased after November 6, 2009 and on or before April
       30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the
       home purchase qualifies provided it is completed by June 30, 2010.
    * Single taxpayers with incomes up to $125,000 and married couples with incomes up to
       $225,000 qualify for the full tax credit.

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