The Tax Credit Basics

• The tax credit will expire on April 30, 2010, but home buyers under contract by April 30 may be able to qualify as long as they complete the sale within 60 days.
  
  
• For first-time home buyers the amount of credit is 10% of the purchase price, up to a maximum of $8000. A first-time home buyer is considered someone who has not owned a principal residence for three years prior to the purchase.
  
  
• For existing home owners or repeat buyers the credit is 10% of the purchase price, up to a maximum of $6500. An existing homeowner is someone who has lived in their principal residence for five consecutive years out of the last eight and are purchasing another home to be their principal residence.
  
  
• The tax credit applies only to homes priced under $800,000.
  
  
• The tax credit phases out for home buyers with incomes above $125,000 for single filers and $225,000 for married couples.

For more information on the tax credit visit:

www.federalhousingtaxcredit.com

White House Fact Sheet on The Worker, Homeownership, and Business Assistance Act of 2009

IRS.gov