More American homebuyers will get tax relief thanks to changes made to the First-Time Homebuyer Credit. H&R Block advises the popular credit is now more accessible to existing homeowners and first-time homebuyers in three ways:
- Through a tax credit worth up to $6,500 for existing homeowners in the market for a new home.
- Through a new closing deadline of April 30, 2010- extended from Nov. 30, 2009- for the $8,000 First-Time Homebuyer Credit. Also, a special provision gives taxpayers two extra months to close if they’ve entered into a contract by April 30, 2010.
- By increased phase-out limits that start at $125,000 for singles and $225,000 for married filing jointly- up from $75,000 and $125,000 respectively. The new limits apply to homes purchased after Nov. 6, 2009.
Under the new requirements, an estimated 2 million Americans are expected to claim the tax benefit. The IRS estimates 1.4 million people have already claimed earlier versions of the First-Time Homebuyer Credit. Continue reading…