With already more than 1.4 million Americans handing in their claims for the homebuyer tax credit, those who do qualify for the federal tax credit but haven’t claimed it should immediately take action.
The homebuyer tax credit
Here are the basic guidelines to receive the $8,000 homebuyer tax credit:
- You must have bought your house any time between January 2009 and December 1, 2009.
- You must not have owned a home for three consecutive years before you bought the house.
- Full credit goes to people buying a primary residence. Couples must earn no more than $150,000, and single people should earn no more than $75,000.
- The maximum credit is either 10% of the house’s value, up to $8,000.
- The Federal tax credit is fully refundable – even if you have no taxes, you still get the $8,000.
Calls for extension
There have been efforts from various groups to get an extension for the homebuyer tax credit. The National Association of Realtors (NAR) are all for an extension, as they estimate that the credit will bring in 350,000 more in extra sales beyond the 1.8 million targeted participants.
Six bills are currently being talked about in Congress for the credit extension, with two in the Senate and four in the House. In one version, the extension would be as simple as putting in an additional six months into the deadline with the accompanying budget. In another version, all homebuyers would be able to claim it, not just first-time buyers, as long as the houses are primary residences. The same bill would also increase the credit to $15,000.
Sign up on the box at the right to get more information on various cost-efficient programs that you can use when buying a house.
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