Are there any income limitations to qualify for this First Time Home Buyer Credit?
Unfortunately, the IRS has established limitations for taxpayers on claiming the the First Time Home Buyers Credit based on their Adjusted Gross Income.
The IRS has stated that this tax credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income (MAGI). For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000.
Effectively, this means that the "First Time Home Buyers credit would not be available for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000."
This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for single filers, head of household and married filing separate taxpayers whose MAGI is $75,000 or less.
Last edited by TaxGuru : 01-29-2009 at 02:31 AM.