The $8000 tax credit is for first-time home buyers; however, for information about the new $6500 tax credit for repeat home buyers, see below. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
The $8000 tax credit for new homebuyers:
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8000.
The credit is available for homes purchased on or after November 6, 2009 and before April 30, 2010.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
The $6500 tax credit for repeat home buyers:
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6500. Homes above $800,000 are not eligible.
The credit is available for homes purchased on or after November 6, 2009 and before April 30, 2010. (Or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010.)
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
