| The Worker, Homeownership, and Business | | | | will need to file a paper return. |
| Assistance Act of 2009 extends the deadline for | | | | A taxpayer who purchased a home on or before Nov. |
| qualifying home purchases from Nov. 30, 2009, to April | | | | 6 and chooses to claim the credit on an original or |
| 30, 2010. Additionally, if a buyer enters into a binding | | | | amended 2008 return may continue to use the current |
| contract by April 30, 2010, the buyer has until June 30, | | | | version of Form 5405. |
| 2010, to settle on the purchase. | | | | Income Limits Rise |
| The maximum credit amount remains at $8,000 for a | | | | The new law raises the income limits for people who |
| first-time homebuyer – that is, a buyer who has not | | | | purchase homes after Nov. 6. The full credit will be |
| owned a primary residence during the three years up | | | | available to taxpayers with modified adjusted gross |
| to the date of purchase. | | | | incomes (MAGI) up to $125,000, or $225,000 for joint |
| But the new law also provides a “long-time | | | | filers. Those with MAGI between $125,000 and |
| resident” credit of up to $6,500 to others who do | | | | $145,000, or $225,000 and $245,000 for joint filers, are |
| not qualify as “first-time homebuyers.” To qualify | | | | eligible for a reduced credit. Those with higher incomes |
| this way, a buyer must have owned and used the | | | | do not qualify. |
| same home as a principal or primary residence for at | | | | For homes purchased prior to Nov. 7, 2009, existing |
| least five consecutive years of the eight-year period | | | | MAGI limits remain in place. The full credit is available to |
| ending on the date of purchase of a new home as a | | | | taxpayers with MAGI up to $75,000, or $150,000 for |
| primary residence. | | | | joint filers. Those with MAGI between $75,000 and |
| For all qualifying purchases in 2010, taxpayers have the | | | | $95,000, or $150,000 and $170,000 for joint filers, are |
| option of claiming the credit on either their 2009 or | | | | eligible for a reduced credit. Those with higher incomes |
| 2010 tax returns. | | | | do not qualify. |
| A new version of Form 5405, First-Time Homebuyer | | | | New Requirements |
| Credit, will be available in the next few weeks. A | | | | Several new restrictions on purchases that occur after |
| taxpayer who purchases a home after Nov. 6 must | | | | Nov. 6 go into effect with the new law: |
| use this new version of the form to claim the credit. | | | | Dependents are not eligible to claim the credit. |
| Likewise, taxpayers claiming the credit on their 2009 | | | | No credit is available if the purchase price of a home is |
| returns, no matter when the house was purchased, | | | | more than $800,000. |
| must also use the new version of Form 5405. | | | | A purchaser must be at least 18 years of age on the |
| Taxpayers who claim the credit on their 2009 tax | | | | date of purchase. |
| return will not be able to file electronically but instead | | | | |