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Income restrictions for First-Time Homebuyers Credit

Posted by Andrew Chan  October 5, 2009 10:00 AM

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Does the $8,000 first time tax credit have any income restrictions, and when does the offer end. I have heard two dates, Nov 30th and Dec 30th, what is the real deal. Under contract or closed?

In order to be eligible for the $8,000 First-Time Homebuyers Tax Credit for purchases made in 2009, your modified adjusted gross income (MAGI) cannot exceed $95,000 dollars if you are a single taxpayer and $170,000 if you are married filing jointly. If your MAGI is between $75,000 and $95,000 dollars for single taxpayers or between $150,000 dollars and $170,000 dollars for married taxpayers filing jointly, you would be eligible for a portion of the total credit based on the actual amount of your MAGI.

First-time homebuyers have until December 1, 2009 to purchase and close on a home to qualify for this credit. Therefore, if you signed a contract to purchase a home but do not close before Dec. 1, you would not qualify for the credit.

Visit the IRS’ web site at http://www.irs.gov/newsroom/article/0,,id=204671,00.html for more information about the First-Time Homebuyer Tax Credit.

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