However, is the tax credit subject to income limits?

Zip Code: 10020

Hi,

Here is the info you are looking for. It was from an article posted in our December newsletter available at www.mdtaxes.com/news1209.html:

$8K HOMEBUYER TAX CREDIT GETS EXTENDED AND EXPANDED


On November 6, 2009, President Obama signed The Worker, Homeownership, and Business Assistance Act of 2009 into law. As part of this Act, the $8,000 First-Time Homebuyer Tax Credit was extended and expanded. The Act also instituted a $6,500 tax credit for repeat homebuyers. Here are the basics:

The $8k first-time homebuyer tax credit has been extended to include homes under contract by April 30, 2010 and purchased by June 30, 2010. Only individuals who have not owned a home for three years up to the date of purchase qualify.

A new $6.5k repeat homebuyer tax credit was instituted for post November 6th transactions. To qualify, you need to own your principal residence for five consecutive years of the eight years prior to the purchase date.

The income limitation for this credit has increased for all post November 6th transactions as follows:
Phase-out Range to Qualify for Both Homebuyer Tax Credits

Pre-11/7/09 Post 11/6/09
Single Individuals $75k-$95k $125k-$145k
Married Couples $150k-$170k $225k-$245k

No credit is allowable for homes with a purchase price of greater than $800,000 for post 11/6/09 transactions.

The post November 6th credit is not available to children under the age of 18, or to individuals claimed as dependents on another person's tax return.

The IRS has promised to issue an updated Form 5405, First-Time Homebuyer Credit, shortly. The new version of this form will combine the pre and post-November 6th rules, and will be a good resource for anyone who purchased a home during the year.

Zip Code: 01801