UPDATE: FIRST TIME HOMEBUYER
TAX CREDIT EXTENDED
Valley Community Development Corporation December 2009
| FIND
OUT IF YOU QUALIFY FOR THE $8,000 TAX CREDIT FOR FIRST TIME HOMEBUYERS To learn about Tax Credits for Move Up/Repeat Home Buyers Click Here! |
President Obama's Worker, Homeownership, and Business Assistance Act of 2009 has extended the First Time Home Buyer Tax Credit for qualified first-time home buyers purchasing a principal residence. If you are a First Time Homebuyer who purchased or is planning to purchase a home between January 1, 2009 and June 30, 2010, this housing stimulus could provide you with a refundable tax credit up to $8,000. |
| INCOME
LIMITS FOR THE TAX CREDIT: The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single payers and $150,000 for married payers filling a joint return. WHAT IS MODIFIED ADJUSTED GROSS INCOME (MAGI): MAGI is determined by the IRS. You will need to know your ADJUSTED GROSS INCOME (AGI) to find your MAGI. AGI is total income for one year minus certain deductions. MAGI can be determined by adding to the AGI certain amounts such as foreign income, student loan deductions and other amounts. VALLEY COMMUNITY DEVELOPMENT CORPORATION IS HERE TO HELP! |
HOW
DOES THE $8,000 HOMEBUYER TAX CREDIT WORK? Q: How is the extended home buyer tax credit different from the tax credit that Congress enacted in early 2009? A: Income limits were increased, documentation requirements were tightened, and the program's deadlines were expanded. The new tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify. Q: Who is eligible to claim the tax credit? A: First Time Home Buyers purchasing any kind of home (new or resale) are eligible for the tax credit. Buyers are ineligible for the tax credit if they buy their home from a close relative, including a spouse, parent, grandparent, child or grandchild. The home must also be used as the buyer's principal residence. Q: What is the definition of a First Time Homebuyer (FTHB)? A: The law defines a FTHB as a buyer who has not owned a residence during the three-year period prior to the current purchase OR a single parent. Q: How is the amount of the tax credit determined? A: The tax credit is equal to 10% of the home's purchase price up to a maximum of $8,000. Q: How do I claim the tax credit? Do I need to fill out an application? A: You claim the tax credit on your federal income tax return. Complete the IRS form 5405 to determine amount, and then claim this amount on Line 69 of the 1040 income tax return. Q: Do I have to repay the money I receive from the tax credit? A: No, this is a tax credit and does not need to be repaid to the IRS. FOR MORE INFORMATION GO TO : http://www.federalhousingtaxcredit.com/2009/faq.php#18 www.fairmark.com www.irs.gov |
© 2008 Valley Community Development Corporation
Equal Housing Opportunity