Are we eligible for the new tax credit?

Ive done research and found the new income limit for the $8000.00 tax credit is $225,000. My fiance and I were no eligible for the old but maybe for the new. Ive dont some research and answered most on my own but still had a couple questions...(I am fully expecting for this to go red but this will hopefully "fatten my wallet" so I came here.

My fiance will make ~100,000 with $10,500 in 401k deductions so she will qualify.

I myself will make ~ 150,000 with $16,500 in 401k deductions and roughly 500.00 in self employment tax deductions.

I tried to see if 401k deductions were included in MAGI but couldnt find it.

Is this based on 2009 income or 2010 income? We would be looking to buy in March or April of 2010.

We may get married in 2010 before the turn of the new year. So what do we file, married or single?

Since she will qualify for the whole and I wont how is that figured out? Does she get 4k and I get a percentage deduction say 2k?

Just wondering if its worth it for me to scale back my income, change my bonus structure for this year etc to qualify since we are right on the cusp.

Thanks.

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96z said: Perfect thats what I needed. Now does MAGI include 401k deductions and how is the credit split? 50/50?

keep reading.....

website sayz said:
What is “modified adjusted gross income”?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income. See IRS Form 5405 for more details.

pforphilip said: 150000?? what do u do if u dont mind me askin
Around here (Morris County, NJ) you could be a public school teacher or police officer. If you want to run your own business Plumbers, Roofing Contractors, and HVAC Contractors usually make that much.