Take Advantage of the Homeowner Tax Credit Extension

Now is the time to take advantage of the homeowner tax credit extension. On November 6, 2009, President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 to provide an opportunity to claim money if you become a new homeowner.

The new legislation:

• Extends the tax credit of up to $8,000 or 10% of the price of the residence for first-time buyers until April 30, 2010
• Increases income restrictions to $125,000 for individuals and up to $225,000 for joint filers, for residences that cost $800,000 or less.

The new legislation benefits those in the military by eliminating the 36-month recapture requirement for members of the military who've had to sell their homes due to extended stays for service. In addition, military families have at least two more years to take advantage of the credit. The new deadline for them is April 30, 2011.

Not new to owning a home? A tax credit is available for you as well. If you've been living in the same residence for five consecutive years over the past eight years, you are eligible to receive a $6,500 tax credit.

To obtain the credit, you must be at least 18 years old or married to someone at least 18. To avoid fraudulent claims, you must attach a copy of the settlement statements to the tax return. You may not use the tax credit to buy a house from a family member or a spouse's family member.