As speculated would happen last week, Congress officially extended and expanded the first-time home buyer tax credit until April 30, 2010. If you want to know specifics on the plan, check out that post, as every detail I highlighted was included in the final version of the bill. I’ve had a few questions about the expansion to existing homeowners part of the bill, so I want to give some more clarity on that part.

Details on the $6,500 Home Buyer Tax Credit Expansion

The new addition to the home buyer tax credit is that buyers who have owned and lived in their current home at least five years out of the last eight will will be eligible for a $6,500 tax credit on the purchase (signed contract) of their new primary residence through the end of April, 2010 (you have until the end of June to close on the house).

The income limits for the existing homeowners is the same as for first-time home buyers – $125,000 for singles and $225,000 for married joint filers.

Is the $6,500 Home Buyer Tax Credit Retroactive?

Contrary to many people’s hopes, the new addition to the home buyer tax credit bill is not retroactive. You must have a signed contract between the dates of November 7, 2009 and April 30, 2010.

Reader Discussion:

• Are you going to take advantage of either the extension OR the expansion of the first time homebuyer tax credit?
• Are you eligible for the tax credit expansion to existing home buyers? Does it make you at least want to look around a little bit?

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