$8,000 First Time Home Buyer Tax Credit Extended

Posted by Madison on November 6, 2009

The $8,000 First Time Home Buyer Tax Credit that was set to expire on November 30 was extended today. The new deadline to take advantage of the first time home buyer credit is to have a signed contract by April 30, 2010 and close on the house by June 30, 2010.

Update: The first time home buyer tax credit is extended until Sept. 30, 2010.

First Time Home Buyer Tax Credit

As a reminder, here are some of the rules for the first time home buyer tax credit:

  • The credit is for $8,000 or 10% of the home’s value, whichever is less.
  • The credit is refundable.
  • The credit is for primary homes that cost $800,000 or less.

The income limits also went up with the extension. Original phaseouts were for incomes between $75,000 to $95,000 for single and $150,000 to $170,000 for couples. Phaseouts will now begin at $125,000 for single and $225,000 for couples.

In addition to extending the date, the bill also included a $6,500 Home Buyer Tax Credit for Existing Homeowners.



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Comments to $8,000 First Time Home Buyer Tax Credit Extended

  1. I bought my house May 8th and submitted for the first time home buyers credit on my 2008 taxes on May 12th. I still haven’t recieved any money. My file went through exams and they approved the return on Aug 31st. It has been a total of 180 days. Here is my message to the President: Mr. Obama, The reason this economy isn’t doing better is because the people responsible for handling your incentives are slackers or just plain stupid. DO NOT COUNT ON THIS MONEY FOR ANYTHING IMPORTANT!

    OhMan

  2. Looking at the phase out amounts, what line on my taxes or W2 do I check? Adjusted Gross Income, Taxable Income, Wages?

    Joe

    • Joe, the income limits are based on modified adjusted gross income.

      For example, from the 2009 return, it means Form 1040, line 38 plus:
      Income from Puerto Rico plus:
      Amount from Form 2555, lines 45 and 50; Form 2555-EZ line 18; and Form 4563, line 15.

      Nice and uncomplicated… right?

      Madison

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