Congress passed the Homebuyer Tax Credit Extension today and President Barack Obama plans to sign it tomorrow which will make it official. Here are the main facts that you should know:
- The tax credit has been extended to April 30, 2010.
- Repeat buyers who have owned their homes for at least 5 years are now also eligible for a credit of up to $6,500 from the government.
- If you're a first-time homebuyer you may be eligible for a credit up to $8,000.
- To qualify, buyers have to sign purchase agreements by April 30, 2010 and have 60 days to close by June 30, 2010.
- The credit is available for the purchase of principal homes costing $800,000 or less.
- The new tax credit has increased income limits.
- Individuals with annual incomes up to $125,000 and up to $250,000 for joint filers are now eligible before the credit begins to phase out.
- The credit is equal to 10 percent of the purchase price of a primary residence.
- Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment.
- Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.
- Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.
- You must be at least 18 year of old to claim the credit