Extensions for Unemployment and First Time Home Buyer Tax Credit

By admin • November 5th, 2009

I know this doesn’t have anything to do with insurance, but it is information that you all need to know about anyway. The Senate passed a bill yesterday that could impact millions of Americans. The vote was an overwhelming endorsement (98-0) of the continued need to help people affected by the current economy as well as try and drive the home buying market.

The new bill extends the current length of eligible time to claim unemployment benefits by 14 weeks. In addition, states that have an unemplpoyment rate higher than 8.5% (yep, that’s us!) will get an extra 6 weeks, for a total extension of 20 weeks. The bill also extends the First Time Home Buyers Tax Credit that was set to expire November 30th. The tax credit is different than a tax deduction. It is a dollar for dollar credit taken straight from the amount of taxes you owe. The current bill actually reads that you get a 10% tax credit of the amount of the price of the home up to an $8000 maximum. There are income restrictions and phase outs associated with the credit as well. The major qualification to be considered a First Time Home Buyeryou could not have owned a home that was your principal residence within the last three years. of course there are a few other qualification so make sure you check with your accountant to make sure that you qualify.

The bill that the Senate passed would extend the First Time Home Buyer Tax Credit until April 30, with closing occurring prior to June 30th. It also extends a credit to other home buyers. If you have owned a home in the last five years and purchase a new home prior to April 30, 2010, then you may qualify for a tax credit up to $6500.

The House is expected to vote on the new bill as early as today. The White House has pledged its support of the bill and has said that they will sign the bill into law once it passes through the House of Representatives.