If you lusted after the $8,000 First Time Home Buyers Tax Credit, but was unable to take advantage - take heart! Effective November 6, 2009 not only has the First Time Home Buyers Tax Credit been extended and income requirements increased, but it has also been expanded to include other home buyers.
The Worker, Homeownership, and Business Assistance Act of 2009 includes a “long time resident” tax credit of $6,500 for anyone that has owned a home for 5 of the last eight years - almost any home owner.
First Time Home Buyers are still eligible for an $8,000 tax credit, but now almost any home owner buying a new home in the next few months, is eligible for a $6.500 tax credit.
Here’s the “quick & dirty” on the tax credit:
- The tax credit is “refundable,” which means it can either reduce your tax bill or increase your refund dollar for dollar. The government gives you the tax credit as “money in your pocket.”
- Applies to a binding contract to purchase a home by 4-30-10. This purchase must close by 6-30-10.
- The credit may be taken on either the 2009 (may require amended return) or 2010 tax return.
- Returns claiming the tax credit cannot be electronically filed (must be mailed in).
- The full credit is available to taxpayers with modified adjusted gross incomes (MAGI) up to $225,000 (joint filers), and $125,000 (all other taxpayers).
- Those with MAGI between $225,000 and $245,000 (joint filers) and $125,000 and $145,000 (all other taxpayers), are eligible for a reduced credit.
- Incomes over $245,000 (joint filers) and $ 145,000 (all other filers) cannot take the tax credit.
- Homes that cost over $800,000 are not eligible for the tax credit.
- Minors (under age 18) and dependents are not eligible for the credit.
- Members of the military and other Federal employees may be eligible for even more time to take advantage of the tax credit (see http://www.irs.gov/newsroom/article/0,,id=215594,00.html
- Get additional information at: http://www.irs.gov/newsroom/article/0,,id=204671,00.html