First-Time Home Buyers Tax Credit

Right now, up to an $8,000 tax credit is being offered by the government to encourage both first-time home buyers and move-up buyers to purchase a home.¹ 

If you are eligible, the tax credit can help ease the financial transition from renting to owning. It can assist with buying furniture and home-décor; making home improvements – like remodeling, landscaping and painting; or paying down debt as you adjust to new monthly expenses. Homes purchased between November 6, 2009 and April 30, 2010 are eligible as long as the sale closes by June 30, 2010.

The tax credit is part of the Worker, Home Ownership and Business Assistance Act of 2009 (H.R. 3548), signed into law on November 6, 2009, and enacted to continue stabilization of the housing market and strengthen our overall economy.

The new legislation:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010. 
• Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between November 6, 2009 and April 30, 2010.

Are you eligible for the tax credit?

• Move-up buyers who have lived in their home for the last five years (or five consecutive years of the last eight).
• First-time buyers, defined as those who haven’t owned a home in three years.
• Purchase required by April 30, 2010 with 60 days to close on the sale.
• Income restrictions of up to $125,000 for an individual and $225,000 for a married couple.
• Maximum home price $800,000
• Homes purchased by a dependent are ineligible.

To learn more about obtaining the tax credit and repayment, visit the Frequently Asked Questions.

For further information about eligibility requirements and limitations, visit www.irs.gov.

This information is subject to change without notice.