First-time home buyers have been getting up to $8,000 in tax credits for purchasing a home since January. This was part of the economic stimulus package Congress enacted earlier this year. The program was set to expire at the end of November. First Time Home buyers have been scrambling to close by the end of November in hopes to earn the tax credit. On Thursday the House voted 403-12 to extend and expand the tax credit to include buyers who already own a home.
Buyers who have owned their current homes at least five years will be eligible for a tax credit up to $6,500. The original First-time home buyers tax credit of up to $8000 has been extended through April. Qualifying buyers have to sign a purchase agreement by April 30, 2010, and close by June 30.
The deadline is extended by a year for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009, to May 1, 2010.
Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.
Source: AP Associated Press
