Tax Credit For First Time Home Buyers

Under the Unemployment Compensation Extension Act of 2009 was a bill introduced by the United States House of Representatives during the 111th United States Congress by Congressman Jim McDermott. It was passed through the house by a 331 to 83 margin, with the Senate approving a reciprocal measure 98 – 0 on November 4, 2009.

In addition to extending unemployment benefits, the Act extended the $8,000 tax credit for a first time home buyer. This home buyer tax credit was extended until April 2010. A $6,500 tax credit was also extended to current home buyers who already owned a home, and bought another home between November 6, 2009 and the end of April, 2010.

In addition, the home buyer tax credit also adjusted the income limits that were placed upon individuals who were seeking to collect the $8,000 tax credit for a first time home buyer or the $6,500 tax credit to repeat home owners.

The income limits for a single purchaser home buyer tax credit was increased to $125,000 from $75,000. For joint filers, the income limit that was based on the purchasers’ modified adjusted gross income was increased for $125,000 to $225,000.