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Time for homebuyer's tax credit running out

Posted March 31, 2010

— The window is closing on a chance for first-time and not-so-new homebuyers to get a federal tax credit for purchasing a home.

Facts about the homebuyers credit Facts about the homebuyers credit

Prospective homebuyers have until April 30 to enter into a housing contract and until June 30 to close on a home to receive the credit, which is generally equal to 10 percent of the home's purchase, up to a maximum of $8,000.

The Internal Revenue Service defines a first-time homebuyer as someone who has not owned a home in the three years prior to purchase.

Current homeowners who have used the house as their primary residence for five of the past eight years are also eligible for a credit up to $6,500.

Single taxpayers making less than $125,000 or married couples with a combined income of less than $225,000 are eligible.

"They just need to start looking," mortgage broker Amy Bonis said Wednesday. "Like, this weekend, they should start looking."

Real estate agents say the low prices and historically low interest rates make it a great time to buy.

Bonis says this is probably the last chance to get the tax credit.

"They've extended the first-time homebuyer credit twice, and I don't think they're going to extend it this time," she said.


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  • La_Grange_Dude Apr 7, 2010

    People are waiting for their returns on the credit for months??? And these liberals think that goverment run health care will be better?? Maybe they should hire 16000 new IRS agents to process the returns.

  • readme Apr 6, 2010

    "tax credit" = other people subsidizing your home purchase. The program needs to end. It just artificially helps keep home prices up anyway. Just what we need; a propped up bubble.

  • pureivy Apr 5, 2010

    I agree ccarter. We purchased a home on November 24 and are going to be waiting quite a while for any return. We are also still waiting for our state return, which was filed at the beginning of February. I'm not going to say that the tax credit isn't worth it, and that if we'd known it would take that long, we wouldn't have done it. BUT, it would've been nice to know because we have spent so much money, maxed out cards, etc. to get the house fixed up, and we could've scaled that down had we known it would take 6 months after filing to get the money back.

  • ccarter Apr 1, 2010

    I am glad someone has finally given a realistic time line as to when to expect your credit in your hands - 24 to 26 weeks. Had my daughter known that up front, she would have definitely waited until she had saved more. As it is, she has drained her savings, maxed out her credit card all in the name of homeownership. She has been waiting since November 12th and still has not seen her check. When she filed her amended 2008 return, she was told it would take around 12 weeks. Her next step is to contact the advocate number for help. Beware and expect it to take 6 months at least.