Home Buyer Tax Credit Extended AND Expanded For Higher Incomes And Current Home Owners.

By Troy Corman, todayshomedeals.com

Search Dallas homes, dallashomes2buy.com

The new Worker, Homeownership and Business Assistance Act of 2009 has extended the deadline for the government tax refund for home buyers. Now, taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010.

Income limits have also been raised. Singles with modified adjusted gross incomes of up to $145,000 can qualify although phase-outs begin at $125,000. For couples filing jointly, the credit begins phasing out at $225,000 and modified adjusted gross incomes above $245,000 do not qualify.

Also, home owners who have lived in their current principal residence for 5 years can qualify for up to a $6,500 credit.

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.

The credit:

* Applies only to homes used as a taxpayer's principal residence.
* Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
* Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405, which you file with your original or amended tax return.

With interest rates near record lows, a plethora of bank-owned properties that need to sell, and Uncle Sam forking over free money, don't be one of those who looks back in a few years and says, "shoulda, coulda, woulda".