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.
- 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.
- You (and your spouse if married) did not own any other main home during the 3-year period ending on the date of purchase.
- 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.
- 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.
- 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.
- 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).
