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Latest Post: Thu, Mar 4 2010 11:37 AM by Scott Westemeyer
  • Thu, Mar 4 2010 11:27 AM
    Tax Credit and Income

    Is there any restriction on income to get the $8000 tax Credit?

    I made $52,000 in 2009, bought a house in 03/2010, and was planing to get the tax credit filing my 2009 income...

    Any input will be appriciated

    Thanks 

  • Thu, Mar 4 2010 11:37 AM

    Kyoto,

    Just like any other question that comes out about the home buyer tax credit, I'd advise you to consult with a CPA to make sure of your eligibility.

    Here's an excerpt from the IRS website on income limits.

    Q. Are there income limits?

    A. Yes. The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income (MAGI). Different income limits apply to purchases on or before Nov. 6, 2009 and those after that date. 

    For purchases on or before Nov. 6, 2009, for a  married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.

    For purchases after Nov. 6, 2009, for a married couple filing a joint return, the phase-out range is $225,000 to $245,000. For other taxpayers, the phase-out range is $125,000 to $145,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $225,000 or less and for other taxpayers whose MAGI is $125,000 or less. (11/19/09)

    http://www.irs.gov/newsroom/article/0,,id=206291,00.html 

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