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The $8,000 1^st Time Home Buyer Tax Credit has been extended to April 30, 2010.

Homebuyers who have not owned a home in the previous three years have the same eligibility as 1^st time buyers.

Existing homeowners who have lived in their property for at least five consecutive years in the previous eight years will now be eligible to receive up to $6,500 tax credit to buy a new home.

Income eligibility is up to $125,000 for singles tax payers or $225,000 for couples filing a joint return.

Homebuyers will have until the end of April to execute a sales contract. They must close on their new home by the end of June.

The tax credit is not available for homes sales above $800,000.

The credit is claimed using Form 5405, which you file with your original or amended tax return.

The credit may give you a refund even if you do not owe any tax.

A HUD-1 Settlement Statement must be attached to the tax return to secure the credit.

The credit must be repaid only if the home ceases to be your main home within the 36-month period beginning on the purchase date.