Congress has just extended the "first-time homebuyers" tax credit. That credit, previously scheduled to expire after November 30, 2009, now is available through April 2010: an additional five months.
What it’s worth: This credit will cut your federal income tax obligation by 10 percent of the home’s purchase price, with an $8,000 cap. If you owe less than $8,000 to the IRS, the government will send you a check for the difference.
Who’s eligible. Someone who has not lived in a home he or she owned for two years prior to the home purchase. Single taxpayers must have income that’s no more than $125,000 while married couples filing joint returns need income no more than $225,000. Partial credits are available with slightly higher incomes. (Homes costing over $800,000 don’t qualify.)
Key dates: If you enter into a binding contract before May 2010, to close on the purchase of a principal residence before July 2010, you can claim the credit as long as the home is purchased by July 1.
