If you think you’re qualified for tax deductions for homebuyers, then don’t waste time. The deadline for the homebuyer tax credit application is at the end of April, and you should close the deal for your new home before July 1, 2010.
The homebuyer tax credit can be as big as $8,000, so what are you waiting for?
Here are the guidelines for qualification:
1) Home buyers who haven’t had a home in the past three years can get up to $8,000 or 10% of the price of the new home, depending on which is lower.
2) If you’ve owned a home for five years straight out of the past eight, then you can qualify for up to $6,500.
3) If you’re single, you should be earning $125,000 a year or lower to qualify. For couples, the limit is at $225,000.
4) If the home is worth more than $800,000, then you won’t qualify for the homebuyer tax credit.
5) If one person in a married couple owned a home within the three-year qualifying period, then they can’t claim the $8,000 tax credit. They can still see if they qualify for the $6,500 version.
6) If you are below 18 years old, or if you’re listed as a dependent in someone else’s tax return, then you won’t qualify.
7) You can still claim this tax credit for your 2009 tax return by submitting an amended return. And yes, you can get the full amount even if it exceeds your tax payment. You can actually get more money back!
Sign up on the box at the right for more information and options about the homebuyer tax credit, and tax deductions for homebuyers.
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