Homebuyer Credit First-Time Homebuyers.  Qualifying first-time homebuyers (you or your spouse have not owned a home during the three years prior to purchase) purchase a home on or after January 1, 2009 through April 30, 2010 (June 30, 2010 if under binding contract by April 30, 2010)*** may be eligible for a tax credit of 10% of the purchase price, up to a maximum credit of $8,000. Existing Homebuyers.  Qualifying existing homeowners who have owned and lived in a principal residence for at least five consecutive years (during the eight years prior to purchase) may qualify for a tax credit for the purchase of a different principal residence. The tax credit is 10% of the purchase price, up to a maximum credit of $6,500, under the same income restriction and schedule*** as first-time homebuyers. Some Restrictions Apply.  To qualify for the credit, purchased homes must be used as the purchaser's principal residence for at least 36 months (vacation homes are not eligible). Other restrictions include: income limitations, age and dependency disqualifiers, and related party sales.   *** Closing Deadline Extended to September 30 for Eligible Homebuyer Purchases. The Homebuyer Assistance and Improvement Act of 2010, signed by the President on July 2, 2010, extended the closing deadline from June 30 to September 30 for any eligible homebuyer who entered into a binding purchase contract on or before April 30 to close on the purchase of the home on or before June 30, 2010. The new law addresses concerns that many homebuyers might be unable to meet the original June 30 closing deadline.   Homebuyer Credit Table (courtesy of Jennings Advisory Group, LLC & Taxspeaker.com)   For additional information please click on the following links to the IRS website: First-Time Homebuyer Credit Questions & Answers: www.irs.gov/newsroom/article/0,,id=187935,00.html  10 Important Facts About the Extended First-Time Homebuyer Credit: www.irs.gov/newsroom/article/0,,id=215827,00.html