Stimulating the economy is the motivation behind many discussions and decisions coming from the White House these days. The original $8,000 first-time homebuyers credit was developed with economic improvement in mind, and the measure's popularity led to President Obama signing an extension and expansion of the credit on Friday.
The tax credit was scheduled to expire on Dec. 1, but the new version comes with a later date and widens the range of those eligible to claim the credit. Learn more about the new tax credit when you
- Homebuyers must sign a contract before April 30 and close on the home by June 30.
- The previous credit was limited to first-time buyers or buyers who haven't owned a home in the past three years. The new version has been expanded to include those who have owned a home for five out of the past eight years and want to buy a new one.
- First-time homebuyers are still eligible to receive the $8,000, while existing homeowners can qualify for a $6,500 tax credit.
- The income limits have been significantly raised. With the previous credit, single people making more than $75,000 or couples earning more than $150,000 didn't qualify for the full credit. Under the new version, single buyers can earn up to $125,000 while a married couple can earn $225,000 and still get the full credit.
Are you hoping to take advantage of the extended homebuyers tax credit?