$8,000 First-Time Homebuyers Credit May Be Extended

The Associated Press is reporting that the U.S. Senate may “extend and expand” the first-time homebuyers tax credit that’s set to expire December 1, which was part of the original stimulus package back in May. Buyers who haven’t owned a home in the past three years are considered first-timer homebuyers, and make less than $75,000 ($150,000 for couples), can claim the credit on their 2009 tax returns.

The proposal would extend the credit to June 30, 2010, and up the income levels to $150,000 for singles and $300,000 for couples.

While I applaud the government for wanting to keep a good thing going, I’m against raising the income levels. Call me cynical, but if you make that much money, you don’t need this “stimulus.” The help should be for those struggling to buy their first home, not those who want to “buy big” and get $8K for doing so.

As first-time homebuyers well below the salary threshold, we qualified for this tax credit, and we can’t wait to file our tax return for this year, that’s for sure. Combined with the deductions for mortgage interest and property taxes, our refund will give us a nice savings cushion for next year.

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