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The Homebuyer Tax Credit – Expanded

Amount of the Credit

Generally, the credit is the smaller of $8,000 ($4,000 if married filing separately), or 10% of the purchase price of the home.

Long-time resident of the same main home. Generally, the credit is the smaller of $6,500 ($3,250 if married filing separately), or 10% of the purchase price of the home.

Who Can Claim the Credit

In general, you can claim the credit if you are a first-time homebuyer or a long-time resident of the same main home (defined below).

First-time homebuyer. You are considered a first-time homebuyer if you meet all of the following requirements.

  1. You purchased your main home located in the United States:
    A) After December 31, 2008, and before May 1, 2010, or
    B) After April 30, 2010, and before July 1, 2010, and you entered into a binding contract before May 1, 2010, to purchase the property before July 1, 2010.
     
  2. You (and your spouse if married) did not own any other main home during the 3-year period ending on the date of purchase.
     
  3. Additional Conditions Apply.

Long-time resident of the same main home.

You are considered a long-time resident of the same main home if you meet all of the following requirements.

  1. You (and your spouse if married) previously owned and used the same main home as your main home for any 5-consecutive-year period during the 8-year period ending on the date you purchased your new main home.
     
  2. You purchased your new main home located in the United States:
    A) After November 6, 2009, and before May 1, 2010, or
    B) After April 30, 2010, and before July 1, 2010, and you entered into a binding contract before May 1, 2010, to purchase the property before July 1, 2010.
     
  3. Additional Conditions Apply.

Phase-out of the credit for homes purchased before November 7, 2009.

  • You are allowed the full amount of the credit if your modified adjusted gross income (MAGI) is $75,000 or less ($150,000 or less if married filing jointly). The phase-out of the credit begins when your MAGI exceeds $75,000 ($150,000 if married filing jointly). The credit is eliminated completely when your MAGI reaches $95,000 ($170,000 if married filing jointly).

Phase-out of the credit for homes purchased after November 6, 2009.

  • You are allowed the full amount of the credit if your modified adjusted gross income (MAGI) is $125,000 or less ($225,000 or less if married filing jointly). The phase-out of the credit begins when your MAGI exceeds $125,000 ($225,000 if married filing jointly). The credit is eliminated completely when your MAGI reaches $145,000 ($245,000 if married filing jointly).
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