Always consult with an income tax professional before taking any action. Home Buyers Income Tax Credit For All Home Buyers That Qualify Contract must be signed before May 1, 2010. Closing must occur before July 1, 2010. Purchase price must not be more than $800,000. Credit is for 10% of the purchase price (subject to a maximum, see following). The credit is refundable to the extent that it is more than your income tax liability. Home must become and occupied as your principal residence and owned/occupied for three years to avoid repayment of credit. Anyone listed as a dependent on someone else's return DOES NOT QUALIFY FOR THE CREDIT (post November 6, 2009). Qualifying taxpayer(s) must be at least 18 years old on the date of purchase/closing (post November 6, 2009). A sale/purchase between related parties does not qualify. Taxpayer Adjusted Gross Income must be less than $125,000 for Single and $225,000 for Married Filing Joint or the credit will phase-out and be reduced. The Credit for a home purchased/closed in 2010 may be taken on your 2009 Individual Income Tax Return (You can file an Amended return if necessary). An executed copy of the closing statement agreement must be attached to the return when filed. For First Time Home Buyers Purchaser must not have owned a home for the three years prior to closing. Maximum credit is $8,000. Existing Homeowners You must have lived in your current home for five years out of the last eight years prior to the closing. The maximum credit is $6,500. Investment and vacation/second homes do not qualify. You are not required to sell your prior home. The new home does not have to cost more than your old one. The preceding is provided for informational purposes and is not presented as advice.  You should consult with a qualified tax professional before taking any action.