Johnny-Come-Lately - Don't Delay - Get Your Homebuyer Tax Credit! Only a few more weeks to qualify for the first time homebuyer tax credit. Don't miss out!
Last November, the government expanded and extended the new Homebuyers Tax Credit. According to the program, first-time homebuyers are eligible for a tax credit of 10% of the purchase price of the home, with a maximum credit of $8,000. And some current homeowners looking to purchase a home can receive a credit up to $6,500.
Although military personnel may qualify for a special extension, the vast majority of homeowners must have contracts in effect no later than April 30, 2010 and must close no later than June 30, 2010 to qualify for the credit.
That means...you only have a few more weeks to get your paperwork going to qualify for this credit before it goes away!
Here is a brief overview of the Homebuyers Tax Credit - and its benefits.
Dollar-for-Dollar Benefit
The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction" or reduction in tax liability that would save just $1,000 to $1,500 when all was said and done.
So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Even Better... It's Refundable!
Remember, because it's a tax credit, it's refundable! That means a homebuyer can receive a check for the credit if he or she has little or no income tax liability.
For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
What Are the Income Caps?
Single tax filers with earnings of $125,000 or less are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers with earnings of $145,000 and above are ineligible.
Joint filers with earnings of $225,000 or less are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers with earnings of $245,000 and above are ineligible.
What's the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sales price of $800,000.
Johnny-Come-Lately - Don't Delay - Get Your Homebuyer Tax Credit!
