If you purchased a home during 2009 or the early part of 2010, you may qualify for a Home Buyer Tax Credit. First time home buyers can receive a credit of up to $8000, while existing home buyers may qualify for as much as $6500.

These tax credits are available as part of the Worker, Homeownership, and Business Assistance Act of 2009. This Act extended the First Time Homebuyer Tax Credit through April 2010. It also provided for an additional credit for existing home buyers. These tax credits are completely refundable and can make a significant change in a tax refund.http://www.federalhousingtaxcredit.com/home.html

There are important requirements to claim each credit. In order to claim the first time homebuyer's credithttp://www.federalhousingtaxcredit.com/glance.php, you will have to meet the following criteria:

1. You must not have purchased a residence in the last three years
2. You must keep the home for at least three years after the purchase date. If you don't, you will have to repay the credit in full.
3. The purchase price of the home must be no more than $800,000
4. The home must be purchased between January 1, 2009 and April 30, 2010. If a binding contract is entered into by April 30, the purchase must be completed before June 30, 2010.
5. You must not be able to claimed by someone else as a dependent for income tax purposes.http://www.federalhousingtaxcredit.com/key_info.php
   
   

There are also certain income requirements that must be met before the credit is claimed. If you purchased your new home between January 1, 2009 and November 6, 2009, you must have earned less than $75,000 if you are filing as single on your tax return. If you are a married couple filing a joint tax return, you must have earned less than $150,000. On the other hand, if you purchased your new home between November 6, 2009 and April 30, 2010, you can make up to $125,000 as a single taxpayer or up to $225,000 as a married couple.

To be eligible for the Repeat Home Buyer Tax Credit, you must meet the following requirements:

1. You must have owned and lived in your home for at least five out of the last eight years
2. The home must be purchased between November 6, 2009 and April 30, 2010 - If a binding contract is entered into by April 30, the purchase must take place no later than June 30, 2010.
3. The purchase price of the home must be $800,000 or less
4. You must keep the home for at least three years. If you do not, you will have to repay the full amount of your tax credit.
5. You must not be eligible to be claimed by someone else as a dependent on a tax return.http://www.federalhousingtaxcredit.com/key_info.php
   
   

Taxpayers who wish to claim the Repeat Home Buyers Tax Credit must also meet income limits. Single taxpayers must earn no more than $125,000 and married couples who file jointly on their taxes must earn no more than $225,000.

While the maximum amount of the credit for each is $8000 and $6500, respectively, the actual amount of the credit you receive will depend on the purchase price of your home. The credits are capped at 10% of the purchase price.

For example, if you interested in claiming the first time home buyers tax credit and you purchase a home with a price of $60,000, you will only receive a credit of $6000, which is equal to 10 percent of the purchase price. Conversely, if you purchase a home with a price of $100,000, you will only be able to claim $8000 as a credit, since 10 percent of the price would exceed the maximum allowable credit.

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