Tax Credit For First Time Homebuyers

Have you filed your taxes yet? Time is running out and if you bought a house, you should get your taxes done ASAP. If you are a first time homebuyer, you need look into the program called the first time home buyer tax credit that is specifically for people who are buying first home. You may also be entitled to this tax credit as well if you have not owned a home in the past three years, you may be able to get up to an $8,000 tax credit. That is a lot of money! If you have lived in your current home for five of the past eight years, you may receive up to $6,500 in homebuyer credit. The five years must be consecutive to qualify. As of right now you must have a contract drafted no later than April 30, 2010 and the purchase must close no later than June 30, 2010. There are income limits. If you are single, the limit is $125,000 and if you are a married couple, the limit is $225,000 with a phase-out $25,000 credit. Make sure you contact your tax preparer to find out if you are eligible and get answers to your questions. Make sure you act fast, who knows if this program will be offered again.