Question about the new homeowner credit ?

I am attaching a link to the form 5405. It has a section for phasing out of the credit when your income exceeds the limit.

By my rough estimate if you purchased your home for over $75000 then your credit would be $4238. It is based by your modified adjusted gross income, so without knowing all your income this is a very rough estimate.

Congratulations on the new home.

Laura H – H&R Block – Senior Tax Advisor 5

**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

A. Yes. The 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.

This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less. You will get a portio of the credit.

Christine EA Master Tax Adviser

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This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you have provided

http://www.federalhousingtaxcredit.com/