New marriage, first home and taxes

Does a newly married couple qualify for the first-time homebuyer credit?

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Carolyn Bigda, staff writer

NEW YORK (Money Magazine) -- Q. My son and his fiance, who are getting married this month, bought a home last year. She had owned a home before, but he had not. Is he still eligible for the $7,500 first-time homebuyer tax credit?

Carolyn Bigda, staff writer, says ...

A. It's likely that he is. Last year's housing act offered a credit of 10% of the home's price, up to a maximum of $7,500, to homebuyers who had not owned a principal residence for the past three years. Married couples must both meet the criteria to claim the credit, but an unmarried joint purchaser can still claim it, even if the other buyer doesn't qualify.

There are a couple of other eligibility requirements to consider too.

Your son's home must have been purchased after April 8, 2008, to qualify, and his income must be $75,000 a year or less to claim the full amount (for married couples it's $150,000 or less).

Finally, under the 2008 law this credit has strings attached: It is to be repaid over a 15-year period (the 2009 stimulus package upped the credit to $8,000 and waived the repayment rule for homes purchased from January through November 2009).

Got a financial dilemma? Go to to submit questions, read the Help Desk archive, and check out Help Desk videos. And tune in to CNN's Newsroom Tuesdays and Fridays, when Gerri Willis and other experts answer your questions. To top of page

Send feedback to Money Magazine
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.