Home Buyer Tax credit 2010, 2011 extension details explained

2010 Extension of First Time Home Buyer Tax credit

Good news for First Time home buyers in 2010. The Economic Stimulus Package of Obama had offered a great incentive to qualified First Time Home Buyers by way of a refundable tax credit of $8000. This incentive has been extended to 2010 for all U.S. Citizens and in certain cases even in 2011 !. Now all qualified home purchases made on or before April 30, 2010 are eligible for $8000 housing stimulus. In order to qualify you only need to sign a binding contract by April 30 2010, and you may complete your home purchase by June 30, 2010. Moreover, certain government employees - Military, Foreign service and intelligence community have one more additional year, that is until April 30 2011 to take advantage of Home buyer tax credit. If you want to read about this tax credit extension in great detail, please visit my Home Buyer Tax Credit and its extension details for a thorough study. For just a brief overview, continue reading this post.

Continue reading if you are a potential home buyer to understand the details and deadlines you need to meet in order to qualify for the refundable tax credit of 8000 USD on your first home purchase.

Do you qualify for 2010 First Time Home Buyer Tax Credit?

The criterion for qualifying for the 2010 home buyer tax credit remain the same as before. Hence, you may be interested in the old article on How to qualify for $8000 Home buyer tax credit for details. Here is a quick list of the criterion, together with the new deadline.
  1. You need to be a first time home buyer, which by definition means that you should not have purchased or owned a principal residence anytime in the past 3 years. (either single or joint ownership). If you are married, both you and your spouse need to be first time home buyers.
  2. The House must be purchased after November 2009. You need to sign a binding contract on or before Apr 30 2010. The deadline for completing the purchase of the house, once a contract is signed it June 30 2010.
  3. In order to qualify for the tax credit, single taxpayers should have income less than $125,000 and married tax payers must have income less than $250,000.
  4. Continue reading more details on the offical webpage Housing Tax Credit at a glance.

Is there a Home Buyer Tax Credit in 2010, 2011 and beyond?

Some people do qualify for $8000 home buyer tax credit even one year after the deadline of April 30 2010. According to this Federal Housing Tax Credit website, qualified service members who are ordered on a period of official extended duty may be eligible for this additional one year extension. Please visit the link above to know more about Tax Credit in 2011. For general U.S. Citizens, it is unknown whether the housing tax credit will be extended even further, after Apr 30 deadline.

Must Visit - Useful Resources for First Time Home Buyers in 2010


Please take a moment to visit one or more of the following official websites on 8000 housing tax credit stimulus and its 2010 extension.
  1. Frequently Asked Questions on Home Buyer Tax Credit
  2. IRS 2010 Extension of Home Buyer Tax Credit (some current home owners qualify)
If there are enough requests, more details of this tax credit will be uploaded. Feel free to post any specific question in a comment.

Federal Tax Breaks, IRS Tax Credits, Tax Rebates in 2009 Economic Stimulus Package and their extensions to that maybe of interest to you


  • Cash for Clunkers - Is it Useful?
  • Will there be a Second Stimulus Plan in 2009 or 2010?
  • 2009 Obama Stimulus Package details explained.
  • New Car Purchase Auto Stimulus details explained- Excise and Sales Tax deduction for new purchase of new vehicles.
  • Cars- Cash for Clunkers - Car tax credit when you trade your old fuel inefficient car for a new one and get a rebate of $3500 or $4500.
  • $8000 First Time Home Buyer Tax Credit details- 2009 Housing Stimulus Bill in Economic Plan proposed by Obama.
  • $800 Making work pay tax credit stimulus- details explained ($400 working tax credit for individuals and $800 tax credit for married taxpayers).
  • $250 Social Security Stimulus Check in 2009 Economic Stimulus Package.
  • 2009 Cobra Stimulus Package 65% Reduction in Cobra Health Insurance Premium for qualifying individuals.
  • 2009 Stimulus Checks? Economic Stimulus Payment
  • $1000 Child Tax Credit, Dependent Tax Credit 2009 extension.

  • FAQ: Can you claim your $8000 first time home buyer tax credit in 2008 tax return itself or do you have to wait till you file 2009 tax return? The law allows any qualified purchases made in 2009 to be treated as if the purchase was made on December 31 2008. You can claim the $8000 first time home buyer tax credit in 2008 tax return itself by filing form 5405 according to the latest IRS ruling. Thus you can get the benefit of $8000 in 2008 tax return itself.

    Income Tax tip for first time home-buyers: If you know you qualify for the $8000 home buyer credit there is no need to wait to file your 2009 tax return in order to get benefit of this housing stimulus. First time home buyers are actually permitted to reduce their income tax withholding by the amount equal to housing credit, i.e. $8000. You can then use this 'extra cash' got by increase in your take home pay for down-payment !

    Question (please answer in a comment): Was this article on First Time Home Buyer Tax Credit useful? Did it help you to decide if you qualify for the housing stimulus?

    Disclaimer The author of this web page is neither a legal consultant nor a tax professional. This article on first time home buyer is meant only as a general outline and may contain inaccuracies or errors. Please consult the official website of Federal housing tax credit for accurate information on this housing tax credit.

    Apr 6, 2010

    3 comments:

    maria June 7, 2010 at 11:36 PM  

    WITH THE RD RUNNING OUT OF FUNDS PRIOR TO THEIR USUAL DATE OF SEPTEMBER AND LOANS BEING HELD PAST THEIR USUAL TIME FRAMES DO YOU THINK THE GOVERMENT WILL EXTEND THE CLOSING TIME ALLOWD PASSED JUNE 30?

    Income Tax India July 21, 2010 at 1:10 PM  

    If necessary the state of Illinois will grant you a six month extension to file your return. This extension will not allow more time if you owe taxes.

    Anonymous August 10, 2010 at 11:55 PM  

    When pursueing a contract on my home, Fannie Mae sat on it twice causing my contract to be a couple of days into May. The seller should be required to act on an offer within a limited time, after all, they are not concerned with whether or not the purchaser is processed in time for the credit.

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