First time homebuyers buying NEW or RESALE homes are eligible for the First Time Homebuyers Tax Credit as long as the home is under contract by April 30, 2010. You must not have owned a principal residence during the three years prior to the purchase. That Tax Credit is equal to 10% of the purchase price up to a maximum of $8000. There is an income limit for single taxpayers: $125,000. For married taxpayers filing jointly, the income limit is $225,000. To claim the tax credit, you'll complete IRS form #5405 and claim the amount on line 67 of the 1040 form. That's the same form for the Repeat Buyer Tax Credit of $6500. This is a Tax Credit, offsetting any monies owed to the IRS. If you owe nothing, you'll receive the full amount. It's that simple! No other forms, no other requirements.

Be sure to take advantage of this opportunity and contact your realtor today! This program is NOT expected to be extended! Time is running out!

Labels: First Home, First Time Homebuyer Tax Credit, Home Buyer, Repeat Buyer Tax Credit, Tax Credit Limits, Taxes