I'm a First-Time Homebuyer. What can I claim on my taxes?

Congratulations on your major purchase.  Depending on when you purchase the home determines your tax benefit.

Nov. 7, 2009 to June 30, 2010 (H.R. 3548)

• The tax credit DOES NOT have to be repaid to the government providing the purchaser "live in the home" and not sell it for a minimum of 36 months
• The tax credit is equal to 10 percent of the home's purchase price (maximum of $8,000, $4,000 for married filing separate status). Credit can be claimed on the 2009 or 2010 return. 
• A copy of the properly executed settlement statement must be attached to the return. Therefore these returns can not be electronically filed.
  
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit. No credit is available if modified AGI is more than $145,000 ($245,000 for married filing jointly).
  
• Taxpayers who have lived in their home for five consecutive years during the eight years before closing on a new home may qualify for a reduced credit of $6,500 or $3,250 for married taxpayers filing separately.
• must purchase or be locked into a contract to close before midnight on April 30, 2010
• Military personnel, deployed overseas for a minimum of 90 days in 2009, would have until April 30, 2011 to claim the tax credit
• No credit is available if home purchase price exceeds $800,000 or if the home is purchased from a person related to the taxpayer (or taxpayer's spouse).
  

Jan. 1, 2009 to Nov. 6, 2009 (American Recovery and Reinvestment Act of 2009):

• The tax credit DOES NOT have to be repaid to the government providing the purchaser "live in the home" and not sell it for a minimum of 36 months
• The tax credit is equal to 10 percent of the home's purchase price (maximum of $8,000, $4,000 for married filing separate status). Credit can be claimed on the 2008 or 2009 return
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. No credit is available if modified AGI is more than $95,000 ($170,000 for married filing jointly).

April 9, 2008 to Dec. 31, 2008 (Housing and Economic Recovery Act of 2008):

• The tax credit DOES have to be repaid over a 15-year period in 15 equal installments starting the 2nd year after you claimed the credit (2010). If your home ceases to be your main home before the 15-year period is up, you must include the remainder of your credit as additional tax on your tax return for that year
• The tax credit is equal to 10 percent of the home's purchase price (maximum of $7,500, $3,750 for married filing separate status)
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. No credit is available if modified AGI is more than $95,000 ($170,000 for married filing jointly).

First-time home buyer is defined:

• Bought your main home in the US – can be a house, houseboat, condo, or mobile home
• You (and your spouse if married) did not own any other main home during the 3-year period ending on date of purchase

To take the credit, complete Form 5405 and include the credit on line 67 of the Form 1040.

Make sure you're eligible - the IRS has already started 107,000 examinations of returns claiming this credit.