Tax Credits for Homebuyers

The $8,000 tax credit included in the American Recovery and Reinvestment Act of 2009 for first-time home buyers for the purchase of a principal residence has been extended and expanded, making it possible for even more Americans to realize their dreams of home ownership!

$8000 Tax Credit for 1st Time Buyers*

*Buyers who have not owned a primary residence within the last three years

$6500 Tax Credit for Existing Homeowners*

*Homeowners who have lived in their principal residence for five consecutive years out of the last eight years and are purchasing a home (repeat buyer) to be their principal residence

 Contact Us for more useful information!

 General information that applies to the tax credits is listed below. Also, the National Association of Realtors has issued a brief that outlines the modifications to the tax credit. For frequently asked questions about the changes, check out our Blog.

Income Limits:  Single or head-of-household taxpayer buyers can claim the full credit if their modified adjusted gross income (MAGI) is less than $125,000. For married couples filing jointly, the income limit is $225,000.

Single or head-of-household taxpayers who earn between $125,000 and $145,000 and married couples earning between $225,000 and $245,000 are eligible for a partial credit.

The credit is not available to single taxpayers whose MAGI is greater than $145,000 or married couples with a MAGI over $245,000.

Effective Dates: Taxpayers who purchased their home after November 6, 2009 and before May 1, 2010 are eligible. Purchase transactions that close prior to July 1, 2010 are eligible if the transaction was subject to a binding sales contract by April 30, 2010. 

Property Limits: Any home under $800,000 that will be used as the owner's principal residence.

The Credit is "Refundable": The tax credit is refundable which means that if the amount of income taxes you owe is less than the credit amount you qualify for, the taxpayer will receive an income tax refund.

Payback Provision: These are true tax credits in that they do not require repayment unless the home owner sells the home or stops using the home as a primary residence within three years after the home purchase.