1. Who is eligible to claim the $8,000 tax credit for first-time buyers?
First-time home buyers who have not owned a home in the past three years and who purchase any kind of home—new or resale—are eligible for the tax credit for 10 percent of the purchase price, up to a maximum of $8,000. To qualify for the current tax credit, a home purchase must occur on or after November 6, 2009 and they must have a binding sales contract in force on or before April 30, 2010. Purchasers have until June 30, 2010 to close.
The full credit is available for married couples filing a joint return whose modified adjusted gross income is $225,000 or less and for other taxpayers who’s MAGI is $125,000 or less. The credit phases out for buyers earning more than those income limits.
Persons claimed as dependents by other taxpayers or who are under age 18 do not qualify for the tax credit program.