Recently extended by the Federal Government until April 30, 2010, this tax credit provides first time home buyers (or people who have not owned a home in the last three years) with an $8,000 tax credit (or 10% of the purchase price, whichever is lower). In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Frequently Asked Questions

1.Who is eligible to claim the tax credit?

First time buyers purchasing a principal residence that closes between January 1 and December 1, 2009. First time buyers are defined as those who have not owned a principal residence in the last three years.

2. How is the amount of the credit determined?

The credit is equal to 10% of the purchase price up to a maximum of $8000. If you purchase a home for $80,000 or more you will qualify for the maximum credit.

3. Are there income limits?

Yes. $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. Partial credits are available for those earning over these limits, and phase out completely for single taxpayers earning $95,000 and married filing jointly over $170,000.

4. How is this credit different from the $7500 credit enacted in July of 2008?

Most importantly, the 2008 tax credit had to be repaid, while this one does not. The 2008 credit was essentially an interest free loan. The 2009 tax credit is only subject to recapture if the home is not maintained as a principal residence for at least three years.

5. What if my tax liability is less than $8000?

You still get a tax credit for $8000. So, for example, let’s say your tax liability for the year was $4000, and you had $4000 federal taxes deducted from your paychecks for the year. Normally, you would owe nothing, and have no refund due. If you qualify for the $8000 tax credit, you would receive a refund of $8000.

6. Is a tax credit the same as a tax deduction?

No. A tax credit is a dollar for dollar reduction in taxes owed.

7. If I purchased a home in 2009 and already took the $7500 credit, can I still get the $8000 credit?

Yes, you can file an amended return. You will get the $8000 credit instead of the $7500 credit. It is best to consult a tax advisor to help with the amended return.

8. What if I buy a home after filing my tax return for 2008?
Can I still take the credit on my 2008 tax return?

Yes, you can file an amended 2008 tax return if you close on a home on or before December 1, 2009.

* Program terms and conditions are subject to change at any time. Please consult a Wintrust Mortgage Loan Professional for the most up-to-date information. All approvals are subject to underwriting guidelines.