There are 4 types of buyers who can qualify for the tax credit when purchasing a primary residence: Existing Homeowners, Past (a) Homeowners, Past (b) Homeowners, 1st Time Homebuyers

ü  Existing Homeowners= Have owned and lived 5 consecutive years of the previous 8 years. 

·         Tax Credit Amount= $8,000

·         Income Cap= $125,000 for individuals, $225,000 for married couples

 

ü  Past (a) Homeowners= Haven’t owned a home for the past 3 years

·         Tax Credit Amount= $8,000

·         Income Cap= $125,000 for individuals, $225,000 for married couples

 

ü  Past (b) Homeowners= If owned and lived 5 consecutive years of the previous 8 years and currently are renting or other.

·         Tax Credit Amount= $6,500

·         Income Cap= $125,000 for individuals, $225,000 for married couples

 

ü  1st Time Homebuyers= Have never owned a home

·         Tax Credit Amount= $8,000

·         Income Cap= $125,000 for individuals, $225,000 for married couples

 

*FOR ALL TYPES OF BUYERS: If your income exceeds the cap, up to $145,000 for individuals, and $245,000 for married couples, you may still be eligible for a reduced tax credit.  Please check with your CPA or the IRS.