THE NEW $7,500 FEDERAL TAX CREDIT explained

Am I Eligible?
If you are a US citizen who has not owned a home in the past three years, you may qualify. To receive the maximum tax credit of $7,500, you must have an adjusted gross income (AGI) below $75,000 for individuals (or $150,000 for joint filers). If that excludes you, take note there is a reduced tax credit available for individuals with an AGI up to $95,000 (or $170,000 for joint filers). For additional eligibility requirements, visit www.federalhousingtaxcredit.com

Am I entitled to the full $7,500 tax credit?
It depends on the price of your home and your adjusted gross income (as outlined above). The credit amount is 10% of the purchase price of you home, not to exceed $7,500.

How does the credit work?
The credit acts like a loan from the government and must be repaid. The good news is you don’t have to pay interest and you can make equal installments over 15 years (or sooner if you sell your home at a gain before the tax credit is repaid).

When can I take advantage of the tax credit? How long does the program last?
The tax credit applies to homes purchased (closed) on or after April 9, 2008, and before July 1, 2009. That’s right. The first-time homebuyer credit is in part retroactive, so if you’ve purchased a home since April 9, 2008, you can still qualify for the tax credit.