HOMEBUYER TAX CREDIT ELIGIBILITY EXPANDED / 02-08-10

The $8,000 Credit

If you were locked out of the first-time homebuyer credit because you earned too much, there's good news.

Now you can qualify for the full $8,000 first-tme homebuyer credit with a single income of up to $125,000 and married income of up to $225,000. Those who earn more will be phased out. The credit ends completely once single income exceeds $145,000 and married income exceeds $245,000.

The $6,500 Credit

The new law carves out an additional credit for homeowners.

If you have owned and lived in a home for at least 5 consecutive years of the last 8 years, you could quality for a $6,500 tax credit if you buy a new home between now and April 30.

The "five of eight" requirement means that this credit could accommodate people who lost their homes or even sold a house and did not immediately replace it.

The credit also phases out for singles earning more than $125,000 and married couples earning more than $225,000.

Consult with a tax professionals before banking on this credit.