Extended Tax Credit

The Home Buyer's Tax Credit has been extended for one year for military and federal employees who were stationed overseas for at least 90 days from January 1, 2009 through April 30, 2010.
This tax credit is good for VA, FHA and conventional mortgages.

In order to claim your extended tax credit you will need to purchase or have a fully executed Real Estate Purchase Contract (REPC) on or before April 30, 2011. You can not amend your 2009 tax returns to make the claim if you bought your home durring those dates so you must claim your tax credit when you file your 2010 tax returns. If you purchase a home in 2011 with either and FHA, VA or conventional mortgage you can claim your tax credit for either 2010 or 2011. If you want to claim your tax credit for 2010 the IRS may require you file a paper tax return instead of e-filing. You should check with your tax preparer or the IRS for more information.

The income requirements to qualify for the extended tax credit are still the same as before for single and married buyers. If you are buying your new home with a VA, FHA or conventional mortgage and are single your income can not be more than $125,000 per year to qualify for the tax credit. If you are married you can not make more than $225,000 per year to qualify. If you earn more than your maximum income requirement you are only eligible for a partial tax credit.

So, if you are in the military or a federal employee who had served for 90 days or more overseas and feared that you had missed out on this great opportunity there is still time to get your tax credit. Feel free to contact us today if you have any questions about the tax credit or any of your mortgage questions.