TAX CREDIT: 10% of the purchase price of a primary residence, up to a maximum of $8,000 for first time home-buyers and $6,500 for repeat buyers. The credit cannot be used for houses costing more than $800,000.
DEADLINE FOR QUALIFYING:Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30. That means you must be under by April 30th and the processing of the loan documents must be finished by June 30th.
MILITARY DEADLINE: The deadline is extended by a year for members of the military who have served outside the U. S. for at least 90 days from January 1, 2009, to May 1, 2010.
INCOME LIMITS: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full tax credit. Individuals with incomes up to $145,000 and joint files with incomes up to $245,0000 qualify for reduced credits.
HOW TO APPLY:Taxpayers can claim the credits on thier federal income tax returns. If the credit their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.
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