Who is a First Time Home Buyer?

• For the purposes of the first time home buyer tax credit, you are a first time home buyer if you have not owned a home in the previous three years. If you are married, both you and your spouse must meet this requirement.
  
  

Home Value

• Only homes that are purchased for less than $800,000 are eligible for the credit.
  
  

Income Limits

• If you are a single tax filer, your modified adjusted income (MAGI) cannot exceed $145,000 for the year that you claim the credit. If you are married and file a joint return, your MAGI cannot exceed $245,000.
  
  

Credit Amount

• The value of your tax credit is calculated by the lesser of $8,000 or 10 percent of the purchase price. For example, a $50,000 home purchase would result in a $5,000 tax credit while a $200,000 home purchase would result in an $8,000 tax credit.
  
  

Refundability

• The first time home buyer tax credit is fully refundable, which means that you will receive the full amount of the credit in the form of a tax refund if you have no tax liability.