Programs and Services

United Way of Wythe County

Twin County United Way
 

Update

President Obama signed an extension and expansion of the first-time homebuyers tax credit on November 6, 2009. The $8,000 credit was scheduled to lapse on December 1, 2009, but will now be extended through the end of June 2010.  Homebuyers must sign a purchase contract before April 30, 2010 and close by June 30, 2010.

The bill also made more homeowners eligible to claim the tax credit.  The income limits were raised: single buyers can now earn up to $125,000 and married couples $225,000.  In addition, current homeowners who have owned and occupied a residence for at least five of the past eight years can claim a $6,500 tax credit to trade up to a new home.

The American Recovery and Reinvestment Act of 2009

On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 (ARRA) authorizing a tax credit of up to $8,000 for qualified first-time home buyers. Click here to learn more about the ARRA in general.

Who is eligible to claim the tax credit?

First-time home buyers purchasing a principal residence - either new or resale - are eligible for a tax credit of up to $8,000. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. The tax credit will be administered through the Internal Revenue Services (IRS).

What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law reviews the homeownership history of both the home buyer and/or spouse.

All home buyers should consult with tax professionals to determine how to claim the tax credit.

For more information about the tax credit related to HOPE's Homeownership Program, call Russell Catron at (276) 228-6280, Ext. 213 or email rcatron@wythehope.org.