$8,000 Homebuyer Tax Credit - income limitations?

New details of the stimulus for home buyers
Fri, Feb 13, 2009
The House has passed the modified version of the stimulus bill, and like the initial version last month the vote split down party lines with no Republican support. Now that the Congressional record has been updated with the text of the new bill, we can take a closer look at the tax credit for home buyers. According to the updated legislation:
* Tax credit of 10% of the purchase price up to $8,000
* Credit only valid for first-time home buyers purchasing a principal residence
* Credit can be applied to purchases made from December 31, 2008-December 1, 2009
* Home purchased must be principal residence for 3 years or credit will be recaptured
* Only applies when taxable income for the year is less than $75,000 (file single return) or $150,000 (file joint return)
Good news for buyers who purchased a new home already this year - you may still qualify for the $8,000 tax credit. And while the extra $500 might not be that exciting, he won’t have to repay any of the credit like in the housing recovery plan that passed last summer.

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Is this correct in terms of the final bill?

The full text of the bill:

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h1enr.pdf

if you want to try to search the thing.

does anyone know if the credit applies to buyers who signed contracts before dec. 31, 2008 but close in 2009?

i hate this first time buyer thing....why not anyone buying as long as it is your prime residence!

"Only applies when taxable income for the year is less than $75,000 (file single return) or $150,000 (file joint return) "

who in Manhattan is buying that fits that criteria ??

Yeah, I hear you, I'll never become a first time buyer again, not matter what I do. Does the government think there are a lot of renters who need some enticement to jump into the market?

"Only applies when taxable income for the year is less than $75,000 (file single return) or $150,000 (file joint return) "

Didn't you know... the liberal democrats consider anyone making above this as EVIL! and non-deserving of government assistence .. even though they are the ones paying for everything!

Not evil, just wealthy enough to pay their own way, as opposed to the Republicans who didn't believe that people making under $150k were worthy of much, if any, help from the government.

Remember this:

http://www.washingtonpost.com/wp-dyn/content/story/2008/06/09/ST2008060900950.html

407PAS-for this bill "new home buyer" only means having not owned in the past three years. Actually for most "new home buyer" programs there is that similar loophole.

wellheythere-when you close.

ap2492-couldn't agree more.

> Not evil, just wealthy enough to pay their own way, as opposed to the Republicans who didn't believe that people making under $150k were worthy of much, if any, help from the government.

Let's not forget that EVERYBODY who pays taxes got tax cuts in 2001 and 2003. Now only the little people are getting tax credits while the richer are having their pockets pilfered during a recession. The asymmetry is bothersome.

I think it should be relative to the cost of living in NYC, so they should increase the limit.

http://www.nydailynews.com/money/2009/02/05/2009-02-05_nyc_so_costly_you_need_to_earn_six_figur.html

when NYC gets compared to national trends, we always lose out. This is very discouraging. I want to buy my first home so I don't owe so much at the end of the year. BUT, as long as I owe a ton of taxes every year, I can't save for a good downpayment. In NYC a couple making $150,000 is NOT rich... and I bet there's a bunch of school loan debt still being payed off.

haha, 150k limit. Hope all 5 of you in Manhattan enjoy that!

Interesting, a number of articles that I have read imply that $150,000 is not the absolute cap but rather that it begins to phase out at that point:
http://www.dailyherald.com/story/?id=272687&src=118

Nothing that I have read really clarifies that. I wonder if someone making slightly over could still benefit.

Any thoughts?

The problem with Manhattan is that you'd need 500K year to feel rich here, however, 150K taxable income per year (meaning 180K gross, more or less) defines a couple in the top 10% in the country, I'm pretty sure, so you have to cap your assistance somewhere. And if you have 150K saved, and and 180K gross income you can (or soon will be able) to buy a 2br/2bt in a nice area with good schools. Not CPW, but good.

"And if you have 150K saved, and and 180K gross income you can (or soon will be able) to buy a 2br/2bt in a nice area with good schools"

Bullshit. 2br/2ba in a nice area with good schools is well over a million. With 200k down you get a $4,380 mortgage payment. Add in another $1000-$1200 maintenance and there is absolutely no way a couple (with kids since you mentioned school) making 180k is affording that.