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Q:
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What is the maximum credit for first time homebuyers?
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A:
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The maximum credit is $8,000. Taxpayers filing married filing separate qualify for a maximum credit of $4,000.
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Q:
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Do I qualify for the credit if I have purchased a home before?
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A:
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Yes, The maximum credit is $6,500; Taxpayers filing married filing separate qualify for a maximum credit of $3,250. You must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
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Q:
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Is there a deadline?
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A:
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Yes, You must buy or have a written binding contract to purchase a home by April 30, 2010. The purchaser will have until June 30, 2010 to close on the home.
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Q:
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Is there an age requirement?
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A:
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Yes, you must be at least 18 years of age and not a dependent.
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Q:
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When can I claim the credit?
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A:
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For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
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Q:
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Are there income limits?
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A:
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Yes, but they have been increased. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.
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Q:
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Is there a limitation to the cost of the home?
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A:
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Yes, as of November 6, 2009 the maximum cost is $800,000.
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Q:
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Are there any restrictions with the new legislation?
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A:
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Purchasers must attach a properly executed settlement statement to their return.
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