Home Buyer Credits may apply if you purchase a primary residence, even if you owned a home before. The amount of the credit can be limited by your income, the price of the home, prior home ownership, your marital status, and the purchase date. If you didn’t own a home for three years prior to the purchase, you’re considered a “First-time Homebuyer”, and could receive a tax credit of 10% of the purchase price, up to a maximum $8,000 for an $80,000 home. The relevant purchase dates have been extended from January 1st 2009 to April 30th this year (2010).

People who already owned a home have between November 7th 2009 and April 30th 2010 to be eligible for a credit of up to 10% of the purchase price of their main home, up to a maximum $6,500. These dates may even be extended up to June 30, 2010 for both types of homebuyers who sign a binding purchase agreement by April 30th.

No repayment is required unless the house ceases to be your primary residence within the first 3 years (i.e. 36 months). Income limits apply for higher-income taxpayers (phase-out for modified adjusted gross incomes between 75-95K single, 150-170K joint). Married people filing separately receive half of the credit.