Income of a newly married couple exceeds 150K limit for the first time buyer credit – can I file taxes separately?
I got married in June 09 and we intend to buy a house in August 09. We are both home buyers first times. My husband makes $ 45K a year and I make $ 125K per year (with over 200K in student loans). Together, we exceed the limit of $ 150K of income a joint statement but I wonder if there is a way for us to still get a $ 8,000 credit. To maximize our tax benefit, how can we manage the following: (1) Should we buy the house together or if the mortgage / house is in one name? (2) Must submit our taxes for 2009 "Married filing jointly" or "Married filing separately. Many many thanks. Cheers!
Usually, when a married couple files separately, they are not allowed to claim the credits. It is almost always worse to file separately. Do not get the house in one name. If the spouse who owns the house dies, a huge mess, even if there is a will, even if your state law says the spouse gets home. Consider yourself a chance that you and your husband have enough to buy a house without the need of credit.
