Federal Housing Tax Credits
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In 2009, a federal law was passed that provides significant tax credits for certain home buyers. Under the Worker, Homeownership, and Business Assistance Act of 2009, qualified first time home buyers can receive a tax credit of up to $8,000, and qualified repeat home buyers can receive a tax credit of up to $6,500. To be eligible for these credits, you must have a binding contract to purchase your home by April 30, 2010, and close on your home by June 30, 2010. Your income must be $125,000 or less if you are an individual or $225,000 or less if you are married. Only purchases of primary residences qualify for the tax credit. If you qualify for the tax credit, the amount of your credit will be a percentage of the purchase price of your home. Generally, you can claim up to 10 percent of the purchase price as a tax credit up to the $8,000 limit for first-time buyers and $6,500 for repeat home buyers.
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