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2009/2010 Extended and Expanded Home Buyer Tax Credit


First Time Home Buyer Tax Credit: 10% of purchase price with a maximum of $8,000 tax credit.

  • Available to buyers who have not owned another primary residence during the three years prior to the date of purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
  • Must be the buyerâs primary residence
  • Income Limits:
    • $145,000 for Single Filers
    • $245,000 for Married Filers

Existing Home Buyer Tax Credit: 10% of purchase price with a maximum of $6,500 tax credit.

  • Available to Current Homeowners who have lived in their primary residence for five (5) consecutive years of the previous eight (8).
  • Income Limits:
    • $145,000 for Single Filers
    • $245,000 for Married Filers

Other Provisions

  • The Federal Income Tax Credit can be claimed on oneâs tax return for the purchase of any single-family home (newly constructed or resale, single family detached, townhouse or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home sales subject to a binding sales contract signed on or before April 30, 2010 will also qualify for the tax credit provided closing occurs on or before June 30, 2010.
  • The tax credit may only be awarded on homes purchased for $800,000 and less.
  • The tax credit is REFUNDABLE, e.g., A first time home buyer who qualifies for the full $8,000 tax credit and owes $5,000 in federal income taxes would owe nothing to the IRS and receive a $3,000 payment from the IRS.
  • The tax credit is a true credit. It does NOT have to be repaid unless the homeowner sells or stops using the home as their principal residence within three (3) years after the purchase. In that case, the full credit amount will be recouped on the sale.
  • Home Buyerâs can claim the credit on their 2009 tax return, amended 2009 tax return, or 2010 tax return.

This is based on information available as of November 2009 and is not meant to be tax or legal advice. As with any tax law change, consumers should check with a tax advisor regarding availability, eligibility and possible timing of any tax credit.