The document summarizes changes to the First-Time Homebuyer Tax Credit. The credit was originally $7,500 but had to be repaid over 15 years, which discouraged many. Congress modified the credit for 2009 based on NAR advocacy: it was increased to $8,000, does not need to be repaid if the home is owned for 3+ years, and expires November 30, 2009. The credit is refundable and phased out for higher incomes.

1. The 2009 First-Time Homebuyer Tax Credit National Association of Realtors® February 19, 2009

9. More on Income Limits This means that for singles making over $75,000 and couples making over $150,000, the credit is proportionately reduced as incomes approach $95,000 and $170,000 respectively. So if a couple makes $165,000, the excess amount is used to create a fraction 15,000/20,000 (.75) times the credit amount. 75% or $6,000 of the credit would be disallowed . They would still get a $2,000 credit. TYPE INCOME LIMIT PHASE OUT START Single Filers $95,000 $75,000 Married Filers $170,000 $150,000