Homebuyer Tax Credit Extended! Signed Into Law November 6, 2009

President Obama has signed legislation to extend the Homebuyer Tax Credit. Passage of the bill was widely anticipated to further spur economic recovery in the housing sector, as more buyers are now eligible for tax breaks under the new law. The $8,000 first-time homebuyer tax credit was originally set to expire on November 30.

In addition to offering the $8,000 first-time homebuyer tax credit, the new law also allows a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more.

The tax credits are available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009, and April 30, 2010. Buyers would have until June 30 to close on their new homes.

Economic Recovery payments

The stimulus packages provides for a one-time payment to Social Security and Supplemental Security Income (SSI) beneficiaries - $250 to individuals and $500 for couples (if both receive benefits). You do not have to file forms or do anything special to get this money. It will just show up by early June as an extra check or automatic deposit, depending on how you usually receive your benefits.