Extended and Expanded: The First Time Homeowners Tax Credit

If you were looking to purchase a home last year before the First Time Home Owners Tax Credit ran out in November and did not find the home you wanted to purchase, you are in luck.

TaxAct

Extended and Expanded: The First Time Homeowners Tax Credit

If you were looking to purchase a home last year before the First Time Home Owners Tax Credit ran out in November and did not find the home you wanted to purchase, you are in luck. The tax credit has been extended to the end April 2010. And this time you do not need to close on a home before the deadline, you just need to have a house in contract. You can close anytime prior to July 1st and qualify for the non-repayment credit. First time homebuyers are anyone that has not owned a home in the past three years.

And the really good news for those that are not first time home buyers, if you are considered a long time home owner there is a new tax credit for you. The tax credit is part of the First Time Home Owners Tax Credit but applies to home purchasers that have lived in the same home at least 5 of the last 8 years. They are eligible for a $6,500 tax credit towards the purchase of their new home. Not quite the $8,000 the first time buyers are awarded but helpful non-the-less.

For those that do not fall into one of these groups you will need to wait for another extension after the current April 30, 2010 deadline. And there are some income phases out to be concerned with. Single tax filers begin to be phased out of the credit at $125,000 in income and completely at $145,000. For married couples the phase out range is $225,000 to $245,000.


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