First-time homebuyers have until April 30 to take advantage of the tax credit of up to $8,000 authorized by the American Recovery and Reinvestment Act and extended by the Homeownership and Business Assistance Act of 2009.
Under the law, to be eligible for the tax credit, first-time homebuyers must buy, or enter into a binding contract to buy a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For sales occurring after November 6, 2009, the law establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns. The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.