Tax Credit and Unemployment Benefits Officially Extended & Expanded

Tax Credit and Unemployment Benefits Officially Extended & Expanded

By Michelle C. Carr-Crowe

The existing tax credit for first-time buyers, originally set to expire at the end of the month, has been extended, expanded and approved by the House, Senate and President Barack Obama.

The new measure benefits a larger group of potential home buyers. It allows both first-timers and existing homeowners to take advantage of thousands in the form of a tax credit. All properties must close by the end of April.

The measure would continue giving an $8,000 tax credit to first-time buyers. In addition, it provides a $6,500 tax break to qualified homeowners looking to move up to middle-market homes that cost no more than $800,000.

The legislation also significantly raises the qualifying income levels to $125,000 for individual income tax filers and to $225,000 for joint filers.

Finally, the bill would extend unemployment benefits 14 more weeks nationwide and 20 more weeks in California and other hard-hit states. That would give the long-term unemployed nearly two years' worth of benefits.

Reprinted with permission from the National Association of REALTORS®.