Veterans Can Still Take Advantage of First Time Homebuyer’s Tax Credit

The deadline for the Home Buyer’s Tax Credit has been extended one year for veterans, members of the military and federal employees as well as their spouses who served outside the continental United States for at least 90 days during the period January 1, 2009 through April 30, 2010.

The tax credit can be utilized on mortgage loans for an FHA, VA or conventional loan.

If you intend to use the tax credit, consult your real estate agent and your lender prior to determining your eligibility. Also, with the Internal Revenue Service (IRS), some restrictions apply, so visit their web site for complete information at www.IRS.gov

WHEN TO CLAIM

If you purchase (or enter into a binding contract to buy) your home on or before April 30, 2011, you can claim your tax credit when filing your tax paperwork for 2010. The current rules forbid you to amend your 2009 return to make the claim when the home was purchased between those dates. If you take out an FHA, VA or conventional home loan and close on the house in 2011 you can claim the tax credit on either your 2010 or 2011 income tax.

To claim your tax break on your 2010 taxes, you may be required to file a paper tax return instead of an e-filed version. Check with your tax preparer or the IRS for more information.

INCOME REQUIREMENTS

The First Time Homebuyer’s Tax Credit program has income requirements for single and married buyers. If you are taking out an FHA, VA or conventional mortgage as a single person, your income must be no more than $125,000 per year to qualify for the full tax credit. Married borrowers must make no more than $225,000 per year.

If you make $145,000 per year as a single person, you are eligible for a partial tax credit under the program. Married taxpayers who make no more than $245,000 a year are also qualified for partial credit.

To get a VA home mortgage loan, visit VA Home Loans Today