Homebuyer Tax Credits

Deadline extended for U.S. Service Members

Now is still a good market for first-time and move-up buyers with the low mortgage interest rates and more affordable home prices.

  • The National Association of REALTORS® estimates the tax credits have helped 4.4 million people buy homes. If you are one of them, learn about how to file for the credit from www.IRS.gov and get five tips about the first-time homebuyer credit documentation requirements. Specific tax questions? Call the Internal Revenue Service at 800-829-1040. NOTE: You must sign a purchase contract by April 30, 2010 and close on the home by June 30, 2010 to qualify for this credit.

    UPDATE: (July 2, 2010) - The tax credit closing deadline has been extended to September 30. The Homebuyer Assistance and Improvement Act of 2010 was signed into law July 2. The extension applies only to transactions that have ratified contracts in place as of April 30, 2010, that have not yet closed.

  • U.S. service members may qualify for the tax credit through April 30, 2011. Members of the U.S. military, foreign service and intelligence communities have another year to purchase a home and claim the home buyer tax credit. According to the Internal Revenue Service, the extension applies to "any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010." Qualifying service members have until on or before April 30, 2011, to sign a sales contract and on or before June 30, 2011, to close on the property. Both the $8,000 first-time and the $6,500 repeat home buyer tax credits are included in the extension. Learn more from the IRS and download an informational flyer.

  • Learn about first-time buyer programs offered by the Illinois Housing Development Authority and be sure to check with you city or county housing office.

  • Understand these 9 facts about the Illinois housing markets and why now is a good time to buy.

  • Learn about tax credits for "green" upgrades.

Source: IllinoisRealtor.org