By the Numbers: Home-buyer tax credit gets new life

2 million

Estimated number of Americans who will take advantage of the federal government's home-buyer tax credit this year, according to projections from the National Association of Realtors. The Internal Revenue Service has reported that 1.4 million families have already taken advantage of the credit, which took effect in January 2009.

The home-buyer tax credit was scheduled to expire at the end of this month but received a one-time reprieve last Friday when President Barack Obama signed the Worker, Homeownership, and Business Assistance Act of 2009.

The credit had been limited to first-time buyers and those who hadn't owned a home in the past three years. Under the updated version of the credit, first-time buyers who purchase a home or have one under contract by April 30, 2010, can qualify for a credit of up to $8,000. And a credit of up to $6,500 is available to people who have lived in a home for at least five years and buy a new home or have it under contract by April 30, 2010. (Members of the uniformed services who have been stationed overseas can qualify for a similar credit until May 2011.) The maximum price for a qualifying home is $800,000.

The updated credit now covers individuals with a modified adjusted gross income (MAGI) between $125,000 and $145,000, up from $75,000 to $95,000; for joint tax filers, the qualifying MAGI is $225,000 to $245,000, up from $150,000 to $170,000.

The new version of the credit also contains measures designed to prevent fraud, a topic we covered last month. —Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Learn the details of buying a foreclosed home and get a thorough inspection of any property you're considering. Once you've moved in, refer to our Kitchen-Planning Guide and Home Improvement Guide interactive.