What's So Great About this "Tax Credit" anyway?
The benefit of a $8000.00 tax credit is, it's a Dollar-for-Dollar benefit, rather than just a "tax deduction". If someone owed taxes, a reduction in a tax liability would be just that. If you owed $1,000 you would get taxes reduced and NO cash back. If a buyer qualified for the entire tax benefit when purchasing a home and owed $2,000 in income taxes, they would get back $6,000 cash.
Higher Income Caps-The amount of income someone can earn and qualify for the full amount of the credit has been increased!! Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the timelines available.