Generally

• The housing tax credit is a refundable tax credit that certain people can claim on their annual tax return. Refundable means that even if the taxpayer pays no taxes for the year, the taxpayer can still get a tax refund check equal to the amount of the tax credit.
  
  

Types

• There are two types of housing tax credits. One is available for first time home buyers and the other is available for repeat home buyers.
  
  

Amounts

• The first time home buyer tax credit is worth up to $8,000. The repeat-owner tax credit is worth up to $6,500.
  
  

Time Frame

• To qualify for either tax credit, you must enter into a sales contract to buy a home before April 30, 2010, and you must close on the purchase before June 30, 2010.
  
  

Limitations

• Both tax credits phase out if your income exceeds $125,000 for individual taxpayers, or $225,000 for married taxpayers filing a joint tax return.