The Senate approved the Tax Credit Extension through May 1, 2010. First Time Homebuyers can still receive an $8000 Tax Credit if they purchase before the date. In addition, a $6500 Tax Credit has been approved for repeat buyers providing they have lived in their home for 5 of the previous 8 years. The cap for home price is $800,000.
Income limits have been expanded to $125,00- for single filers and $225,000 for joint filers. There are prorations for incomes up to $145,000 single and $245,000 married.
Buyers with contracts in place by April 30 have an additional 60 days to close. Military personnel serving overseas for at least 90 days between January 1, 2009 and May 1, 2010 have an additional year.
To redeem the credit, buyers make the claim on their income tax return. If the amount of your credit exceeds taxes, the government issues a check - just like a refund.