If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?

Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phase-out limits.

Can you give me an example of how the partial tax credit is determined?

Just as an example, assume that a married couple has a modified adjusted gross income of $235,000.  The applicable phase-out to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phase-out range of $20,000 yields 0.5.  When you subtract 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 $8,000 by 0.5.  The result is $4,000.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $138,000.  The buyer’s income exceeds $125,000 by $13,000.  Dividing $13,000 by the phase-out range of $20,000 yields 0.65.  When you subtract 0.65 from 1.0, the result is 0.35.  Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Please remember that these examples are intended to provide a general idea 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.

To take advantage of the tax credit, call 1-888-562-6200 or head to our website www.churchillmortgage.com to Request a Call Back and one of our Loan Specialist will contact you at a time that is convenient for you. Remember, a purchase agreement must be signed by April 30, 2010 and the closing documents signed by June 30, 2010 to qualify for the tax credit.