Placeholder Image

Subtitles section Play video

  • Hi, I'm Michael Alban from Turbo Tax with a news flash for homebuyers and homeowners.

  • In November 2009, the federal government extended and expanded the popular First-Time Homebuyer's Credit program.

  • It lets you trim your tax bill by up to $8,000, a boon to homeowners facing mortgage payments for the first time.

  • Sign a binding contract to buy a principal residence on or before April 30th 2010,

  • then close by June 30th and you can claim the credit on your 2009 or your 2010 tax return.

  • Besides extending the deadline, the IRS has lifted income ceilings.

  • Married couples making up to $225,000 combined and individuals making up to $125,000 are now eligible.

  • Benefits start to fade, though, toward the top of that range.

  • and the credit cannot be claimed for homes costing more than $800,000.

  • If you have not owned a home for three years, the IRS will consider you a first-time homebuyer.

  • If you're married, you and your spouse must qualify.

  • Now, some current homeowners may also benefit.

  • If you have lived in your home for at least five of the past eight years,

  • you can receive a tax credit of up to $6,500 for buying a new home.

  • Use it to pay your monthly mortgage, start a retirement account, or embark on home improvements.

  • There are no credits for second homes or vacation homes.

  • Taxpayers who move often should note another wrinkle.

  • After claiming the credit, you must occupy the house as a primary residence for three years.

  • If you sell it or convert it to business or rental use sooner,

  • you may owe the IRS the full amount you received.

  • For more information about the first-time homebuyer's credit, deductions for homeowners and other tax tips, visit

Hi, I'm Michael Alban from Turbo Tax with a news flash for homebuyers and homeowners.

Subtitles and vocabulary

Click the word to look it up Click the word to find further inforamtion about it