Taxes (TAX)

[ypsiCPA]

First-Time Homebuyer Credit

If you purchase a home by November 30, 2009, a refundable credit can be claimed on your 2008 return (amend if you previously filed without the credit) or on your 2009 return.

Qualifications:
1. You (and if married, your spouse), haven't owned a home in the three years prior to closing.
2. Modified adjusted gross income (MAGI) doesn't exceed $95,000 ($170,000 if filing a joint return). See instructions http://www.irs.gov/pub/irs-pdf/f5405.pdf for definition of MAGI.

Comments:
1. Credit is 10% of purchase price, but cannot exceed $8000 ($4000 if married filing separately).
2. Credit is reduced if MAGI exceeds $75,000 ($150,000 if filing jointly). It may make sense for joint filers with over $150,000 income to file separate returns. Filing status cannot be changed from joint to separate on an amended return, but this might work for credit claimed on 2009 return.
3. If home is purchased between January 1, 2009 and November 30, 2009, the credit does not have to be repaid.