Most details for first-time homebuyers remain the

same. The maximum tax credit is still $8,000 ($4,000

for married individuals filing separately), and anyone

who has not owned a home within three years is

considered a “first-time buyer.”

• A purchase must be under contract by April 30,

2010, and must close no later than June 30, 2010.

The maximum home value purchased cannot exceed

$800,000.

• After Dec. 1, 2009, income limits rise to $125,000

for singles and $225,000 for married couples; up

from the previous limits of $75,000 for singles and

$150,000 for married couples. The tax credit phases

out incrementally at each $20,000 increase in

income.

An existing homeowner who purchases another home

may now claim a tax credit of up to $6,500. To qualify,

that owner must have owned and used the same

residence as a principal residence for any consecutive

five-year period in the previous eight years.

• Personal income limits, maximum home value, and

contract/closing deadlines are the same as those for

first-time homebuyers.

The tax credit does not have to be repaid if the buyer

stays in the home at least three years. If the home is

sold before that, the entire amount of the credit is

recaptured on the sale.

Homebuyer Tax Credit