First-Time Homebuyers Credit Information

If you are interested in claiming the First-Time Homebuyer Credit on your tax return, you must meet certain requirements to qualify as a first-time homebuyer. People who meet the requirements will receive up to an $8,000 credit when they file their taxes. Some requirements include location of the home and an income limit.

Prior Home Ownership

If you have never owned a home or haven't owned a home in the past 3 years, you meet one of the qualifications of a first-time homebuyer under the First-Time Homebuyer credit guidelines. Homeowners who have owned and lived in their homes for 5 consecutive years of the past 8 also qualify as a first-time homebuyer, according to the IRS.

Location

To qualify for the First-Time Homebuyer credit, the home must be located in the United States. Even if you meet other requirements, homes purchased outside the United States or in the United States territories do not qualify for the credit.

Date of Purchase

Your home must be under contract no later than May 1, 2010 and the home must be closed on by July 1, 2010 to qualify you as a first-time homebuyer. Houses under contract earlier than April 28, 2008 do not qualify for the credit.

Income Limit

Your income cannot be more than the modified adjustment gross income limit to qualify as a first-time homebuyer. A married couple that files jointly must not have an income higher than $170,000 for home purchases on or before November 6, 2009, according to the IRS. Single taxpayers must make less than $95,000 to qualify for the credit for a home purchased on or before November 6, 2009. The income limit is higher for homes purchased after November 6, 2009. A married couple that files jointly after this date cannot make more than $245,000 and single taxpayers must make $125,000 or less. Couples and individuals who earn closer to the limit may receive less of a tax credit.

Reference
IRS