The $8,000 first time home buyer tax credit is only available to taxpayers who earn less than certain amounts. To qualify for the full tax credit, taxpayers must have a modified adjusted gross income of less than:
- $75,000 (for single taxpayers)
- $150,000 (for married taxpayers filing jointly)
If you earn more than these amounts, you may still qualify for a partial first time home buyer tax credit. The tax credit is phased out on a sliding scale until you hit the absolute income limits of:
- $95,000 (for single taxpayers)
- $170,000 (for married taxpayers filing jointly)
If you earn more than these amounts, you are not eligible for the tax credit.
What is Modified Adjusted Gross Income?
Modified adjusted gross income (also seen as ‘MAGI’) is a term used by the Internal Revenue Service. Modified adjusted gross income is your total annual income minus certain “above-the-line” deductions (these do not include the standard deduction, itemized deductions, or personal exemptions) and plus certain foreign-earned income.
The easiest way to find your MAGI is to look at your most recent tax return. On IRS Forms 1040 and 1040A, your AGI is the last number on page one. On Form 1040-EZ, your AGI is on line four.
First Time Home Buyer Resources