Update! The White House has extended and expanded the homebuyer tax credit through June 30, 2010, as long as a binding sales contract is signed no later than April 30, 2010. First-time homebuyers and non-first-time homebuyers are now eligible for the credit. Highlights of the expanded homebuyer tax credit are:

• the tax credit applies to homes purchased after November 6, 2009 and before July 1, 2010
• first-time homebuyers and non-first-time homebuyers are eligible
• income limits are increased to $125,000 for single taxpayers and $225,000 for married taxpayers for the full credit; and $145,000 single and $245,000 married for the partial credit
• military personnel on extended duty outside the U.S. get an extra year to buy a house and claim the credit

Who is eligible for the first-time homebuyer tax credit?

To qualify for the first-time homebuyer tax credit, you must be a homebuyer who:

• did not own a primary residence during the three years prior to the purchase
• buys a single-family principal residence in the U.S. on or after April 9, 2008, signs a binding sales contract before May 1, 2010, and closes before July 1, 2010  (If you build a home, the date you first occupy your home is considered to be the purchase date.)
• is a citizen, or a resident alien as defined by the IRS
• did not buy the home from a related person who is an ancestor or descendant (spouse, parent, grandparent, child, grandchild, etc.)
• meets the income guidelines:

• owns and lives in the home for at least three years (For the 2008 credit, you must have lived in the home until the end of the tax year)

Go here for more information.

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