􀂃 The credit was set to expire on November 30, 2009.

􀂃 The first-time homeowner tax credit is available for those eligible taxpayers who enter a binding home buying contract for a principal residence on or before April 30, 2010.

􀂃 The eligible taxpayer must close on the home by June 30, 2010.

􀂃 The amount of the credit remains at 10% of the purchase price, up to $8,000.

􀂃 The taxpayer can take this credit on either their 2009 or 2010 returns using form 5405.

􀂃 The tax credit remains fully refundable, meaning the credit will be paid out to the homeowner even if their tax obligation is less than the amount of the credit.

􀂃 The homeowner does not have to repay this credit unless the home ceases to be the homeowner’s principal residence within 36 months of closing.

􀂃 You are not eligible for this credit if you purchase a home from a close relative including: spouse, parent, grandparent, child or grandchild.

􀂃 You are not eligible for this credit if you owned a home at any time during the three years prior to this purchase.

􀂃 This law authorizes a tax credit for those homeowners who have owned their principal residence for at least five consecutive years (out of an eight-year period) and purchase a new principal residence.

􀂃 This tax credit goes to a maximum of $6,500.

􀂃 This provision only applies to those people who have purchased homes after November 6, 2009.

􀂃 The credit phases out for individuals with a modified adjusted gross income between $125,000 and $145,000.

􀂃 The credit phases out for joint filers with a modified adjusted gross income between $225,000 and $245,000.

􀂃 For those who purchased the home prior to November 6, 2009, the original phase out schedule applies.