example of how the partial tax credit is determined...

just as an example, assume that a married couple has modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this limit. Diving $10,000 by $20,000 yeilds 0.5 When you substract 0.5 from 1.0, the result is 0.5 To determine the amount of the partial first time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. And, the result is $3,750

Here is one more example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Diving $13,000 by $20,000 yields 0.65. When you substract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit $2,625

Please remember that these examples are intended to provide a general idea only of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.