CONGRESSMAN CARNEY TRULY SERVES

October 2, 2009


Dear Friend,


Congressman Carney has reported for active duty at Langley Air Force Base in Virginia. He will return from duty on October 13. While he is away, Chief of Staff April Metwalli and I will be writing Fridays with Chris on his behalf.

Earlier this year, Congress passed the American Recovery and Investment Act, as part of an effort to bolster our economy through job creation and investments in long-term economic growth. Under the Recovery Act, 95 percent of Americans have seen increases in their paychecks. One of the Recovery Act's programs, The First-Time Homebuyer Tax Credit, is set to expire November 30. The credit of up to $8,000 is generally available to homebuyers with qualifying income levels who have never owned a home or have not owned one in the last three years. With the deadline quickly approaching, you must complete you first-time home purchases soon to qualify.


If you are hoping to take advantage of this tax credit, here are a few things you should know about the Recovery Act's First-Time Homebuyer Tax Credit:


o To be considered a first-time homebuyer, you - and your spouse if you are married - must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.


o You cannot claim the credit before there is a completed sale and purchase of the residence. The sale and purchase are generally completed at the time of closing.


o To qualify for the credit, the completed purchase must occur by November 30, 2009


o The home must be located in the United States.


o The credit will be either 10 percent of the purchase price of the home or $8,000, whichever is less.


o The amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000 or $150,000 for joint filers.


o The credit is claimed on IRS Form 5405, First-Time Homebuyers Credit.


o Taxpayers can claim the credit for a qualified 2009 purchase on either their 2008 or 2009 tax return. For those who have filed a 2008 return, a Form 1040X, Amended U.S. Individual Income Tax Return can be filed in order to get a refund in 2009.


o The credit for qualified 2009 purchases does not have to be repaid, as long as the home remains your main home for 36 months after the purchase date.


If you need assistance with this or other housing matters, please contact our Clarks Summit office at 1-866-846-8124. Thank you, and have a wonderful weekend.


Sincerely,

Paul Macknosky
District Director for Congressman Carney