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How Do I Know if I Get the Full Credit or a Partial First Time Home Buyer Tax Credit?

The first time home buyer tax credit offers up to $8,000 to first time home buyers. The actual amount of the tax credit is 10% of the home purchase price up to a maximum of $8,000. That means that any home that costs over $80,000 will entitle the purchaser to the $8,000 credit amount. A $65,000 home purchase would qualify the buyer for a $6,500 credit.

Additionally, you must meet the income requirements to be eligible for a full or partial tax credit. You must have a modified adjusted gross income of $75,000 or less for single taxpayers and $150,000 or less for married taxpayers to receive the full first time home buyer tax credit. You may still be qualified for a partial credit if you earn less than $95,000 (single) and $170,000 (married).

First Time Home Buyer Resources