There is still time for members of the U.S. armed forces to receive a tax credit* when they buy a home!
The Worker, Homeownership, and Business Assistance Act of 2009 authorizes an extension of the tax credit for first-time home buyers
† and existing homeowners‡ who are qualifying1 members of the U.S. armed forces. This is great news for our dedicated servicemen and women—there’s still time to buy a home and benefit from low interest rates, a wide selection of homes and potential tax savings*!
Participating in the tax credit program is easy:
• You claim the tax credit on your federal income tax return.
• The tax credit is a straight dollar-for-dollar reduction of your income tax bill.
• The tax credit is equal to 10% of the purchase price of a principal residence, not to exceed:
— $8,000 for a first-time home buyer
† who makes a purchase after November 30, 2009 and before May 1, 2011±
— $6,500 for an existing homeowner
‡ who makes a purchase after November 6, 2009 and before May 1, 2011±
• The tax credit is allowed if the purchase price of the home does not exceed $800,000.
• The credit begins to phase out for taxpayers with adjusted gross income in excess of $125,000, or $225,000 in the case of a joint return.
• Within the first three years of the purchase date, if you sell the home or it ceases to be your principal residence, the tax credit must be repaid to the Internal Revenue Service. However, if you are a member of the U.S. armed forces, Foreign Service of the United States, or an employee of the intelligence community and are required to leave your home due to government orders for qualified official extended duty service, you may not have to repay the tax credit.*
• *Consult your tax advisor for more information on how the tax credit will impact you. Tax laws are complex, and we want you to be well informed before you the make decision to purchase a home.
