How to Claim the First-Time Homebuyer Tax Credit

345 Responses to “How to Claim the First-Time Homebuyer Tax Credit”

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1. 1
   Rhiannon Says:
   February 20th, 2009 at 1:57 pm

   DH and I closed on our house on April 2nd, 2008, thus missing out on the 1st-time homebuyer tax credit by SIX DAYS! Needless to say, we’re annoyed.

2. 2
   Kelly Says:
   February 20th, 2009 at 2:58 pm

   Thanks for posting this! I am claiming my $8000 this weekend!

3. 3
   n double l Says:
   February 20th, 2009 at 4:02 pm

   Can you clarify for me? For 2008 buyers, its only 7500$?
   Does anyone have any idea why they didnt amend the 2008 requirement to repay. seems like a redundant attempt to stimulate but a big screw you to the folks who bought last yr

4. 4
   nickel Says:
   February 20th, 2009 at 5:14 pm

   n double l: Not much to clarify here. It’s exactly what I stated above (I took the info from the IRS). I’m guessing that they didn’t amend the 2008 requirement because those people have already bought. It’s not a “big screw you”, but rather a calculated expenditure of money. You already bought, so there’s no point in rewarding you. This is intended to get people who *haven’t* bought to go out and do so. I’m not saying it’s fair, just explaining why it’s not backdated to 2008. Of course, that begs the question of why they bothered to extend it back to Jan 1 (instead of making it effective upon signing) as the same argument holds for people who already bought in early 2009.

5. 5
   N double l Says:
   February 20th, 2009 at 7:17 pm

   I get that. Hopefully I don’t have to be where I am for more than 6 or 7 yrs. Job is stable and I’m earning 5% on the 7500$ in my checking acct . I have some other questions I’d like to ask. I’ll send in an email maybe u or some of ur readers have some ideas what to do to maximize my profits

6. 6
   Eu Says:
   February 21st, 2009 at 1:52 pm

   Can I claim this credit now for my 2008 return though I haven’t bought a house yet but will within 6 months from now? My situation now would allow me to recieve the full amount though next year I will have earned too much to qualify.
   Thanks,RJ

7. 7
   david Says:
   February 22nd, 2009 at 5:02 am

   In response to #6

   You can not claim the credit NOW since you have NOT purchased a house. If you do purchase a house in 2009 you can qualify based upon your 2008 earnings. I believe you also would be able to amend your 2008 return to get the money prior to filing your 2009 return

8. 8
   thomas Says:
   February 22nd, 2009 at 11:44 am

   The purpose is to get people to buy houses in a recession, yet the recession has been here for some time now. Lots of people not able to take advantage of these programs.

   Still think they shouldn’t have done either of these. Now that you get $8k free, what is to stop you from once again buying too much house or instead of investing back into the home and/or other positive things? This will probably just go to buying things they probably a)don’t need b)can’t afford.

   oh well, just another day.

9. 9
   Mike Says:
   February 22nd, 2009 at 12:52 pm

   Any advice is appreciated -

   I owned a condo in Dallas from 2003 until April 25, 2006.

   My dad and I are on the contract.

   I got married January 14, 2006 and we moved to an apartment on Feb 11, 2006.

   My condo closed on April 25, 2006.

   My wife and I have rented from February 2006 until next month (March 2009) when we close on a home on March 5, 2009.

   Since I was out of my condo in February but it did not sell until April – is it not considered a “Main Home” from the date we moved out until the date it sold?

   Can we claim this tax credit?

   Who would know?

   Thanks

10. 10
    Mark Says:
    February 22nd, 2009 at 3:45 pm

    If I by a Fixer upper house for $40,000 and I put another $40,000 into it, will i get the full $8,000 credit? Or is it just 10 % of the initial purchase value?

    Thanks

11. 11
    Cornell Says:
    February 22nd, 2009 at 4:48 pm

    My first home and I purchase a rent to own home and my down payment is 6500. Can I get a tax credit for this?

    Thanks,

12. 12
    Robert Says:
    February 22nd, 2009 at 6:00 pm

    Is this tax credit refundable? If I have zero federal income tax liability, will I receive a check for 8000 dollars? Or do I actually need 8000 in tax liability to get the full amount? Thanks.

13. 13
    Tom Says:
    February 23rd, 2009 at 11:37 am

    @Mark

    As far as I can tell from the 5405 instructions, it is only the 10% on the purchase price.

    @Robert

    Yes, it is refundable.

    Now for my question: I want use Free File Fillable Forms (free e-filing) for my return, and I have everything filled in. However, the 5405 hasn’t been updated. Should I
    A) Wait however long it takes to for them to update the form
    B) Just fill in $8000 on the old form and hope the IRS accepts it
    C) Just print out the forms with the new 5405 and mail everything in instead.

    Any input would be appreciated.

14. 14
    Lee Says:
    February 23rd, 2009 at 3:29 pm

    Can I apply for the $8,000 credit now if I have a house under contract (earnest money contract)? Closing is to take place in approximately 25 days.

15. 15
    Indiecn Says:
    February 23rd, 2009 at 6:42 pm

    And following the logic of #14:
    I am in contract to buy property A, filed for the $8000 based on the address of property A. Got the money, but the deal fell thru.

    Instead, I ended up buying property B (different address) before Dec 1, 2009. Do I have to fill out any additional forms to correct the address? Ie. How do they track that I own the property for at least 3 yrs?

16. 16
    Carye Says:
    February 23rd, 2009 at 8:15 pm

    The IRS has amended the tax form but I am being told the credit has not actually been implemented yet. I am very frustrated…..using a tax professional office for the first time and they do not even know what is going on
    apparently.

17. 17
    Mary Says:
    February 23rd, 2009 at 8:38 pm

    My son used 1040EZ form for federal. He bought a home on 1/23/09. He wants to file an amended form for the $8,000 credit. Does he have to file a 1040 amended form instead of an amended 1040 EZ form to get the credit. If he can use the 1040 EZ form, on what line does the credit go?

    Thanks

18. 18
    Cameron Says:
    February 24th, 2009 at 12:18 pm

    The question below is from federalhousingtaxcredit.com in the FAQs section.

    What types of homes will qualify for the tax credit?
    Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

    From my understanding, under the definition of the principal residence under the capital gain tax exclusion, I could buy and house and rent it out for a year or two, live in it for 3 years after renting it, and I’d still be eligible. So, say out of 5 years, I rented it for 2 years, lived in it for 3 years … or out of 4 years, rented it for one year, lived in it for 3 years, would I have to pay back the tax credit?

    Read the Washington post article I linked. It explains the definition of “principal residence” under capital gain tax exclusion.

    Hopefully that’s not too confusing, but I’d appreciate some feedback. I know in the explanation on this site it said, “36 months beginning from the date of purchase”, but according to the Washington Times article, this wouldn’t be correct.

19. 19
    Tim Says:
    February 24th, 2009 at 1:49 pm

    I’m curious about Lee’s Question “Can I apply for the $8,000 credit now if I have a house under contract (earnest money contract)? Closing is to take place in approximately 25 days.”

    I’m in the same situation. Anyone know?

20. 20
    Julie Says:
    February 24th, 2009 at 5:59 pm

    I closed on my first house Dec 17, 2008 (wanted to move in over Christmas)…wish I would have waited another week or so to get the “true” tax credit. I understand that its meant to provoke future buyers, but it would also be good to ensure that ones that just purchased stay afloat. Do you think there is “any” chance that they’ll amend it and have it accept all new purchases since April 8, 2008? Also, if filing “married filing separate”, do both spouses have to claim the credit? The loan/title is in my name only, thus my husband doesn’t want to claim anything on his return for 2008. Is this possible?

21. 21
    rick Says:
    February 24th, 2009 at 6:42 pm

    I have the same question as others. We Recently went under contract on Monday. I know that we qualify for the rebate, but the question is can we use this money at time of colosing towards our down payment or do we have to recieve it next year on our taxes or even this year if we are one of those who have not done there taxes this year. Wondering how to move my money around in order to close without any problems in the next 30.

22. 22
    KZM Says:
    February 24th, 2009 at 8:30 pm

    KZM asks: “I am self-employed and have not filed for quarterly taxes (just completed first year as BizOwnr). I am pre-qual’d FHA. I owe about 5k in taxes, if I filed for an extension, would I be extending my need to pay those taxes and still have a completed tax return to show my lender or would I need to pay my tax liability first, then close on a house and receive the tax credit.

    My idea is that if I can not pay the taxes, but still show the returns to the lender, then take the credit at close, I will have ZERO tax liability, and I can take the money I’ve escrowed for taxes and put to reduce debts and reduce debt-to-income ratio, thus affording me MORE HOUSE. What I qualify for right now is slightly less than what I am looking for / need.

    THANKS”

    ANY HELP PLZ ???

23. 23
    Daniel Says:
    February 25th, 2009 at 3:16 am

    I will be making $80,000-$85,000 this year.

    Does anyone know what the sliding scale is exactly? How much less do I get if I am making $80,000 or $85,000 versus someone making <$75,000.

24. 24
    Chris Says:
    February 25th, 2009 at 11:09 am

    Great coverage of this credit…it has been very helpful. One thing I have not been able to find is any commentary on filing an extension so one can buy a home in May for instance and still claim it on their 2008 tax return… My wife and I are in this situation (working through a short sale) and do not expect to close until the late April to May time frame. I am assuming I can file an extension and simply make the claim once we close…any input on this?

25. 25
    Wander Says:
    February 25th, 2009 at 2:26 pm

    If I recieve this 8000$ credit will I get my normal tax return this year. Also will I be able to recieve it if I rent a bedroom out in the house I buy. It would still be considered my primary residents so it wouldn’t be a rental property.

26. 26
    Jason Says:
    February 25th, 2009 at 3:25 pm

    Chris,
    Do you owe taxes or will you be getting a refund (before the$8,000 credit)? We’re in the same situation as you, so we filed our taxes, and received our refund already to help with closing costs, etc. I have an amendment all filled out along with the form 5405, so as soon as we close, I’ll send that in for the other $8,000 credit. If you owe money, then I would guess the extension would be the better route…

27. 27
    KZM Says:
    February 25th, 2009 at 3:42 pm

    Chris + Jason, >> >> ??

    I owe money on 2008 taxes (about 5k) but have not found a house to buy yet.

    A) If I file an extension and buy a home before July 1, I can get the $7,500 2008 tax credit PLUS the 2009 tax credit all received this year?

    B) This money will be received as credit BEFORE closing? How does that work? What happens if I don’t close? Pay it back?

    C) In order to close on a property, can I have simply filed my taxes but not have paid yet. Can you file your taxes and just get extension on paying the money you owe IRS? I am 24 and this is my first year as self-employed so sorry for the green questions people . . .

    KZM

28. 28
    Kristy Says:
    February 25th, 2009 at 4:14 pm

    We will be putting a contract on a house in the next week or so. Does anyone know the month you have to close by in order to ammend your ‘08 taxes? I heard April or June but no one knows for sure.

29. 29
    Chris Says:
    February 25th, 2009 at 4:15 pm

    Jason – Thanks for the reply…that is agreat thought (we will be receiving money) and I am not sure why it didn’t even cross my mind to go with an amendment. Thanks for the input!

30. 30
    Erica Says:
    February 26th, 2009 at 11:30 am

    To LEE, TIM, and RICK: We have not yet closed on the house we are building, but have a purchase sale agreement and paid our earnest money. We filed for the first-time homebuyers credit by filling out the form with our future home’s address and the approximate closing date (we don’t know the absolute date since we’re building). We received the money with the rest of our refund and will now use it toward the down payment/closing costs. Hope this helps!

31. 31
    Erica Says:
    February 26th, 2009 at 11:40 am

    To KZM:

    A) You will not get the $7,500 2008 tax credit, if you buy a house between Jan. 1, 2009 and Dec. 31, 2009, you will only get the $8000 tax credit (which is better anyway)

    B) You have to know the address and closing date of the house you are purchasing in order to fill out the form. Which means, if you have a purchase sales agreement, but have not yet closed, yes you can get the money before closing if you’re timing is right. If you aren’t buying a house yet (don’t have an address or closing date to include in the form) then you won’t be able to complete the form and get the credit. It sounds like you should file an amended form for the first-time homebuyers credit later in the year (when you buy a house) and just do your 1040 now.

    Sorry, I don’t know the answer to your question C.

32. 32
    Erica Says:
    February 26th, 2009 at 11:49 am

    I forgot to say above that you also have to know the purchase price of the home when filing for the first-time homebuyers credit. So, as I said before, you have to be close enough to closing that you have all of this information in order to file for the credit. Otherwise, you have to file an amended form later.

33. 33
    Joanne Says:
    February 26th, 2009 at 1:11 pm

    Question, we built a home in 2008. We paid cash and did not get a mortgage. I would be willing to get a mortgage to be able to receive the $8000.00 tax credit. Will my mortgage paperwork work as a purchase date?

34. 34
    Meg Says:
    February 26th, 2009 at 1:12 pm

    We are buying a home this year in 2009. We have already claimed the $7500 tax credit. As far as I understand the repayment of this is amended “automatically” right? Or do we have to file an amended 1040? We’ve already recieved the funds and don’t really know what to do at this point. I haven’t filed my taxes yet and am second on the mortgage (we’re not married yet so we’re filing single) can I just claim the other $500 on my return? Or will we need to file an amended 2008 return altogether? How does that work?

35. 35
    Erica Says:
    February 26th, 2009 at 1:27 pm

    Joanne,
    You said you built a home in 2008, when in 2008 was the move-in date? This will determine whether or not you are eligible for the $7,500 tax credit. But unless the house wasn’t done until 2009, you cannot get the $8,000. It shouldn’t matter if you had a mortgage or not. For building a home, the purchase date is considered the date you moved in.

36. 36
    Erica Says:
    February 26th, 2009 at 1:29 pm

    Meg,
    I am currently looking into this as I am in the same position. I believe you will need to file an amended return, but as soon as I find out for sure, I will post again.

37. 37
    Paul Says:
    February 26th, 2009 at 3:24 pm

    Erica/Meg,

    I also filed for and recieved the $7500 tax credit but do not close until March 11. As you stated I was able to do so because I knew the closing date and purchase price and was willing to take the risk. Now, I am wondering what to do about the $8000 payback-free credit that technically I’m elligible for. I’m guessing an amendment is all that is needed. I’m looking forward to your research and answer Erica.

38. 38
    Joanne Says:
    February 26th, 2009 at 3:25 pm

    We moved into the house June 28, 2009. How difficult is it to file an amended return? As I understand it, the $7500 has to be paid back $500 per year for 15 years. Any chance the current administration will forgive these loans?

39. 39
    jennifer Says:
    February 26th, 2009 at 4:41 pm

    Is the 2009 $8,000 a tax credit or a refund? Last year we owed $1,000 in taxes, we just bought a house in 2009 and plan to use the new $8,000 credit..does this mean we will actually be getting a check for $7,000 ($8,000 minus the $1,000 we probably owe)?

40. 40
    Erica Says:
    February 26th, 2009 at 6:06 pm

    Two things:
    One thing I forgot to address is that yes, Joanne, the $7,500 will have to be paid back over 15 years (the new 2009 $8,000 does not though). You can fill out a new W4 from your employer that asks to have an additional $21 per paycheck (if you get paid twice a month for example) withheld. Just divide the $500 by however many paychecks you get a year. If you bought the house with a spouse and filed jointly, you can each have half of that withheld. You don’t actually have to start doing this until 2010 though; however, I’m not sure why you would wait.
    Second, this is for Jennifer, you are correct. If you owe $1,000 you will get $7,000, none of which you will have to pay back.

41. 41
    Joanne Says:
    February 26th, 2009 at 7:16 pm

    Erica, your the best! Mr. Obama just gave us a $13 a week tax cut, I could give back $10 of it and still be ahead of the game with $7500 in the bank. As long as the paychecks keep coming. Not necessarily a sure thing these days.

42. 42
    Erica Says:
    February 26th, 2009 at 7:30 pm

    I should probably be clear in all of this by making sure everyone understands that these amounts are UP TO $7,500 for 08 and $8,000 for 09. As long as you purchased your house for more than $75,000 in 08 and more than $80,000 in 09, you’ll get the full amount. Otherwise, you’ll get 10% of the purchase price, which means if your house was only $40,000 (what part of the country do you live in?! Maybe I need to move there!) then you will only get $4,000. Make sense?

    The unstable economy is exactly why I think it’s smart to start paying back the $7,500 now (instead of waiting until 2010). Who knows if we’ll have jobs by then? At least you know you can spare the $10/week now.

43. 43
    Bill Says:
    February 27th, 2009 at 2:38 am

    WARNING!

    You can NOT claim the 7,500 or 8,000 credit before you buy the house and move in as your primary residence. If you do, you will be committing TAX FRAUD. Remember, you can always get an extension to file, or claim it in an amended return later in 2008, or claim it in 2009. Please, don’t follow the example of people above – Indiecn, Erica, Meg, Paul.

    If you have made this mistake, take care of this immediately. Don’t wait for Erica to do her “research”. Hopefully, the IRS won’t assess penalties or interest if you pay the money back now. You should seriously consider consulting with an accountant and/or tax attorney. And for god’s sake, stop talking about it. The internet is not anonymous. A whistle blower can get a reward of between 15% to 30% of the collected proceeds under the Tax Relief Act of 2006.

    People, get some real tax advice from professionals. Don’t trust me or anyone here. If a professional screws you at least you have some legal recourse. H&R Block for instance, will pay for interest and penalties that come from their mistakes in filing your return.

    These are large sums of money and the IRS will come calling eventually.

44. 44
    Bill Says:
    February 27th, 2009 at 2:48 am

    Oops, scratch the part where I said “and move in as your primary residence”. For home buyers, it is only when you bought the house that matters. If you built the house, then what matters is when you move in.

45. 45
    Bill Says:
    February 27th, 2009 at 2:54 am

    @Erica – Wow, I can’t believe you actually said “if you have a purchase sales agreement, but have not yet closed, yes you can get the money before closing if you’re timing is right.”

    NO, NO, NO. Absolutely not!! Where in the world did you get that crap from? Seriously, did you just make that up? Didn’t you think it was strange there wasn’t a place on the 5405 to put the “future purchase date”? It only had a place for “purchased date” (past tense). The instructions say “Enter the date you acquired the home” not “might acquire the home” or “plan to acquire the home”. Just look where that thinking landed Indiecn. How does he explain how he filled in the wrong date and the wrong address on the 5405? Think that might get flagged?

    Also, the reason someone might wait to pay back the 7500 is because inflation eats away at the money you owe at around 3% a year. According to my math (hope I did it right), you save $360 if you wait 2 years to start repayment (assuming a constant 3% inflation a year for 15 vs 17 years).

    Stop giving out tax advice. You are going to hurt someone.

46. 46
    Cameron Says:
    February 27th, 2009 at 10:14 am

    Bill,

    I’m assuming you would know the answer to this. If I were to buy a house this year and rent it out for a year (no income…just to pay off the mortgage monthly), would I still be eligible for the tax credit if I LIVED in the house for at least 3 years following. So, for example…say I bought the house next month, rented it out for 12 months, then lived in it for 36 months over a 48 month period? Would that work or do you have to live in it as soon as you buy the house to be eligible? Thank you.

47. 47
    Chris Says:
    February 27th, 2009 at 12:24 pm

    Great Insight.
    I have two questions, I will eventially go to a tax pro, but I wanted to see what others thought:
    1) I filed my taxes online (turbotax) and we are closing on a house in March. Can we send the 5045 manually or go through the websie? (probably something I should ask TurboTax)

    2) is this a flat $8000 refund (or 10%) or if you received, lets say, $1000 back from the government, do you only get an additional $7000? As in, only up to $8000.

    Thanks for any replies

48. 48
    Chris Says:
    February 27th, 2009 at 2:51 pm

    Opps,
    One more thing:
    Is there a minimum down payment that needs to be made in order to get the credit?
    Thanks

49. 49
    katman2 Says:
    February 27th, 2009 at 6:28 pm

    My wife and I are planning to purchase a new house in a couple of months. We are registered as an LLC. Can the LLC receive the tax credit as a first time buyer?

50. 50
    sarah seoh Says:
    March 1st, 2009 at 2:20 am

    Hi there,

    We are purchasing a house with names of my husband and I this march in 2009.

    But I am resident -alien but he is not yet. He has only tax id.

    Then, can I claim the tax credit, $8000?

51. 51
    James Says:
    March 2nd, 2009 at 1:40 pm

    Would a displaced homemaker qualify as a first time home buyer. I have buyers that owned homes with their husbands but in the divorce the husbands were awarded the home. In most situations they are still considered a first time home buyer because they are displaced homemakers at that point, but I have not seen anything about that with this credit.

    Thanks!!

    James

52. 52
    Sebastian Says:
    March 3rd, 2009 at 10:18 am

    i bought a house in july last year and I already filed my 2008 tax return but i did not attached form 5405.. can i use a 1040x to clain the first time home buyer credit?

    Please help me!

53. 53
    Allen Says:
    March 3rd, 2009 at 11:37 am

    I am currently waiting on the loan to be closed out and receive my first Buy home in the end of March. Can I claim credit for the 2008 tax return? do I have to wait after receive the home?

    Thank you

54. 54
    Dan Says:
    March 4th, 2009 at 4:57 pm

    I don’t beleive you have to even have a home picked out yet – as long as you are planning on buying one this year, they will give it to you. If you claim it, and you don’t end up buying a home, then you will need to return the cash… I’m ammending my tax return as soon as the tax cut update comes out and I have not yet closed…

    Good luck!
    Get your money!

55. 55
    Beverley Says:
    March 5th, 2009 at 9:07 pm

    I bought my current residence in July 2003. Got married in August 2007. My husband is not on the deed or loan. He has not owned a residence since 2005. We are upgrading to a larger home this month. Can we claim the credit or 1/2 the credit based on his first time homebuyer status? thanks.

56. 56
    Vanessa Says:
    March 5th, 2009 at 10:55 pm

    Ok maybe im not understanding. We already filed out taxes and recieved the 7500 but our house closes at the end of this month. Do we get the difference of the 8000 or is this something separate? Also since we close this year does it mean we dont have to repay the money?

57. 57
    Jon Says:
    March 6th, 2009 at 12:02 am

    Can I claim $4000 and my spouse claim the other $4000 if we file separately? Or I have to file jointly to claim the full $8000 if married? Thanks.

58. 58
    alexa Says:
    March 6th, 2009 at 1:54 pm

    My fiance is going to be buying a home in May 2009 from my parents (we won’t be getting married until 2010). He will be ‘renting to own’, so making payments directly instead of taking out a loan–would he still qualify for the $8000 credit or will he need an actual loan?

59. 59
    Melinda Says:
    March 7th, 2009 at 12:12 pm

    I plan on buying a house this year (2009) to receive the tax credit. I have already filed my taxes, I do know that there is a form 5405 that you can fill out. Is this the correct form to fill out? If I fill this form out how long will it be before I receive my tax credit?

60. 60
    Jessica Says:
    March 7th, 2009 at 8:30 pm

    I’m confused. Tax form 5405 has a box to check if you are going to claim the credit this year for a home purchased before 12/01/2009. If my husband and I are planning on buying a home this year and want to use the credit to assist with either the down payment or closing costs, can we request the credit now? If not, what is the cut-off date for amending our 2008 taxes? For example, if we file our taxes now then purchase a home in July, can we file for the credit then or do we have to wait until 2010 to file for the credit?

61. 61
    Alex Says:
    March 8th, 2009 at 2:27 pm

    I’m a bit confused myself… A lot of people have said that they got their tax credit before closing. Form 5405 asks for the acquired date of the property. Is the IRS accepting future dates for this? In other words, I am closing on April 10th, can I fill this out with April 10th as purchase date even though it has not happened yet? Or do I use the date the contract was submitted to the county? (problem is that this is not the acquired date). Please clarify. Thank you!

62. 62
    shawna Says:
    March 8th, 2009 at 8:47 pm

    You have to wait until you have *closed* on the house before you can claim the credit. Two options, file your taxes now and amend them later to get the credit or wait to file until after your closing (assuming its before april 15th).
    Also you cannot efile yet (turbo tax etc) because the irs hasn’t updated it’s rejection codes to accept the 8,000 tax credit. I was informed by my efile provider I can file a paper tax return or wait until they fix this at the end of the month.
    Hope this helps.

63. 63
    Joanie Says:
    March 9th, 2009 at 6:38 pm

    I have a question. My husband and I are looking to buy a house through an owner will carry deal. we wouldn’t actually purchase through a bank the the owner supplies the contract for us and we both sign it, including him. We then start making our payments to him rather than the bank. Can we still claim the 8000 ta credit if we do this?

64. 64
    rani singh Says:
    March 10th, 2009 at 2:32 pm

    i bought the house in Febuary 28 2008, do i get some credit back??????

65. 65
    EM Says:
    March 11th, 2009 at 11:08 am

    Whoa – the $8,000 credit can’t be had when you e-file! E-file with the credit included and the return is REJECTED at this time! IRS is unsure when or how their software will be corrected to handle this line item even though the tax return software companies have been updated to include it. A call to the IRS confirmed & they advised us a paper return be sent in. No mention of this snafu on the irs.gov website though…
    Home purchased Jan 2009

66. 66
    Dustin Says:
    March 11th, 2009 at 10:35 pm

    I will be closing on my house in 3 weeks. The debate now is should I go ahead and file my amended return now to get the process started or do I need to wait to send it in until the close date.

67. 67
    Joanie Says:
    March 13th, 2009 at 1:28 pm

    I have a question. My husband and I are looking to buy a house through an owner will carry deal. we wouldn’t actually purchase through a bank the the owner supplies the contract for us and we both sign it, including him. We then start making our payments to him rather than the bank. Can we still claim the 8000 ta credit if we do this?

68. 68
    Joyce Says:
    March 13th, 2009 at 2:41 pm

    Husband and I are both on Social Security Disability and do not have “taxable income”. I am expecting a small inheritance in next two or three months and would like to purchase a decent Mobile Home then. I bought this small, old Mobile Home (ready for the garbage heap) in 1999. If I were able to purchase a Mobile Home for about $30,000 or so in next three months would we qualify for this 10% stimulus credit? How would we apply, not owing income tax this year or last? We are very low income and could only purchase a Mobile Home (for cash) if and when I receive this small inheritance, Otherwise, we can’t. The credit would help us furnish the home, whereas we’d have no money left over to furnish it. This old trailer I have is bearly liveable, and I must pay lot space rent and for liability insurance just to live here. If we could buy a decent mobile home (we need a larger one, as this old thing is only 12′ x 46″ and my husband now requires a lot of equipment due to his disabilities and no room left to live in here! ) . Can this credit help poor, disabled folk like us with very low income or would this “old junker trailer” I bought in 1999 disqualify us?? If we qualify, how would we apply?? Can you help us??? Than you

69. 69
    Tim Says:
    March 16th, 2009 at 8:58 am

    To : #65

    Em:
    Our ‘E-Fillable Forms’ attempt to file was also ‘Rejected’ due to the form not accepting more than $7500 for the first time homebuyer credit (we purchased after Dec 31, 2008 so are eligible for the $8000 amount).

    I also tried to file on a commercial site that cost about $10 to file both fed and state, but their system could not accept the new amount either. I have a printed copy now, and I’m tired of entering the same information into multiple online systems,so it will be paper for us…

    —————–
    Please excuse or ignore the following rant, but this got me thinking:

    This is a great informational website, and I’m glad it’s here, but has anyone noticed that the number and complexity of filing options has increased ridiculously since online filing has become available?

    It probably costs more of our tax dollars to administer and update the dozens of IRS vendors than it would to create one free system that works for everyone.

    Why don’t we DEMAND that the Fed and states get it together, and make a system that is not bureaucratic joke instead of clogging up the net with questions and issues we have about THEIR dumb system to each other. These are all issues that should have been answered by the IRS anyway.
    I urge you to talk about, and voice your opinions to policy makers.
    I will.

70. 70
    JJ Says:
    March 17th, 2009 at 7:00 pm

    My closing date was 12/29/08. Moved into the house after Jan 1st, 2009. Am I only eligible for the $7500 credit?

71. 71
    eddie Says:
    March 25th, 2009 at 8:10 am

    I filed my first time homebuyers credit amendment for my home I purchased in 2008. Turbo Tax did it and I e filed it. My amendent was accepted and it showed the amount that I will get back, but as I read that you cannot efile it. So my question is did it tell me I was accepted but later on I will find out it really wasn’t? If it was really accepted, its been over two weeks, how long before I receive my refund?

72. 72
    Scott Says:
    March 25th, 2009 at 11:23 am

    I recently purchased my first home and my wife and I qualify for the 2009 first time home buyers tax credit. We filed early this year and have received our returns already. I would like to claim the tax credit as soon as possible. I read somewhere about getting an ammendment to my already filed taxes. Is this correct and how do I go about this?

73. 73
    eddie Says:
    March 25th, 2009 at 11:31 am

    Scott this is true. If you go to the irs website you can get the amendment form. Scott I have a friend that went to liberty tax and they did it for him for a fee.

74. 74
    Chasen Says:
    March 25th, 2009 at 12:09 pm

    Hello. Can I claim the credit without purchasing a house, then use the $8000 as down payment??

75. 75
    eddie Says:
    March 25th, 2009 at 12:15 pm

    Chasen that would be nice. The bill doesn’t allow for that to happen, but if you get a loan you can get it after your closen date I beleive as long as its before june or july, quite an incentive, but remember you have to be on your first house withen the last three years and must use it as your primary resident.

76. 76
    Chasen Says:
    March 25th, 2009 at 12:36 pm

    Thank you for replying. Im worried becaused I already filed the taxes and my tax preparer said i was approved for $8000. So what if i take the money and buy a house later? Will i be considered doing tax fraud?

77. 77
    eddie Says:
    March 25th, 2009 at 12:49 pm

    Not sure it sounds like fraud to me. If you havent purchased a home then you don’t qualify, your tax preparer is mistaken.

78. 78
    mary a. Says:
    March 26th, 2009 at 10:34 pm

    my husband and i formed an LLC with a first time buyer in order to help her buy a home.
    our income is over $125,000; hers is not.
    she has never owned before; we currently own.
    we put more money into the LLC than she did to purchase the home.
    the LLC paid ‘all cash’ for the home.

    does the LLC qualify for the $8000 tax credit?

79. 79
    Kelly Says:
    April 2nd, 2009 at 2:22 pm

    RE:Joyce comment #68 SSDI
    Joyce,
    I also receive SSDI, so I called the IRS . I was told if you qualify for the credit as far as not buying a home in the past 3 yrs, meet income guidleines, then you would file a return with your ssdi $amt on the return, just like you did when you filed for the stimulus payment last year. Did you file last year for the simulus check? In other words, yes, you do qualify for the credit, so enjoy, and go pick out some new furniture.

80. 80
    chasen Says:
    April 2nd, 2009 at 4:15 pm

    what do i do? i applied for the tax credit and received it, YET i dont own a property. should i give the money back or get a condo before December??????

81. 81
    eric Says:
    April 2nd, 2009 at 9:43 pm

    i am going to buy a house next month, however, if i don’t have any income for 2008 and 2009, therefore i don’t need to file the tax, am i still able to receive these 8000 amount.

82. 82
    eddie Says:
    April 3rd, 2009 at 8:10 am

    Eric, yes you can still claim the credit.

83. 83
    Kelly Says:
    April 3rd, 2009 at 11:15 am

    Chasen,
    Did you put an address of a property on your 5405, or how exactly did you claim the credit. I hate to sound like a negative Nelly, but you may be penalized, or perhaps have some fraud charges. If you give it back, what wil be your reason? I mean, are you going to tell the IRS your deal didn’t go through, or you changed your mind? Perhaps you should call a tax professional.The IRS is no joke, so please do not let this go unresolved.It doesn’t matter if they don’t catch it for years they will catch it, and fine you, and probably charge you, so please remedy it before they come to you.

84. 84
    Kelly Says:
    April 3rd, 2009 at 11:19 am

    Chasen,
    I prepared my taxes yesterday. I made an offer on a house on Monday, but it has not been accepted yet, therefore my tax preparer hasn’t and won’t submit the forms until I actually receive word my offer was approved.You have some choices if you have not already received the money. You can file your taxes normally, not claiming the credit, and when you do buy a house, amend your return. Your other option is to file an extension, which gives you until October 15th to file your taxes, without penalty, and if you purchase a condo before then, you can file your taxes, and claim the credit at that time.I was told this yesterday by my tax preparer.

85. 85
    Chasen Says:
    April 3rd, 2009 at 2:12 pm

    Thank you for replying Kelly. I was thinking about returning it due to the fact that i do not have property yet and i dont want to get penalized..I didnt understand the rules of the credit. I thought u could get the money and then buy property..Thank you again

86. 86
    Kelly Says:
    April 3rd, 2009 at 2:41 pm

    You are welcome Chasen. Perhaps if you call the IRS, since you weren’t completely at fault in my opinion, meaning, they gave you the credit right? Maybe if you call them and explain that you didn’t understand the credit-(they should understand that as many people don’t understand it),tell them you received it but you now realize this was an error,and you wish to return it as you now realize you don’t qualify,and you don’t want to be penalized.I think they would be able to work with you on that. Things always work out better if you take a proactive approach, rather than waiting for them to come to you. Believe me, once they start attaching fees and penalties, it’s not going to be good. Plus, they may think you were intentionally trying to defraud them, if you don’t try to give it back.I wish you the best

87. 87
    Robin Says:
    April 6th, 2009 at 11:22 am

    My husband and I are planning on purchasing the home that we have been renting for the past year . However the home is owned by his grandfather so are we not eligible for the tax credit.

88. 88
    Kelly Says:
    April 6th, 2009 at 11:43 am

    Robin,
    I’m afraid you are correct. You are not eligible for the credit if purchasing a home from a relative.
    Here is a list taken from irs.gov that states who cannot take the credit. You are probably getting a better deal buying from grandpa than a stranger-so that may be one way to look at it so you don’t get down. Imagine how quickly 8,000 will vanish, opposed to how much you are saving off of the purcase price.

    Q. Who cannot take the credit?

    A. If any of the following describe you, you cannot take the credit, even if you buy a main home:

    Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.

    You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

    You stop using your home as your main home.

    You sell your home before the end of the year.

    You are a nonresident alien.

    You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year.

    Your home financing comes from tax-exempt mortgage revenue bonds.

    You owned another main home at any time during the three years prior to the date of purchase. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another main home at any time from July 2, 2005, through July 1, 2008.

89. 89
    Andrea Says:
    April 6th, 2009 at 3:38 pm

    My Husband and I closed on our house March 31st. We started to file our taxes Sunday, March 29th on Turbo Tax. We noticed that Turbo Tax had not finished updating the new 5045 form for the 2009 credit and we saved it for later. As of Saturday April 4 the forms were ready to be filed. My question is, at closing our lender said that we would have to send in a copy of our HUD setllement paper(the first thing you sign at closing that they tell you to NEVER loose). I had not heard, been told, or read that you had to send of copy of that in with your file aka you couldn’t efile your return. Is the efile system updated so you can efile now and do you acutally have to send a copy of that form and if so can you do that and still efile the paperwork?

90. 90
    Mike Bloom Says:
    April 6th, 2009 at 7:44 pm

    Please let me know how to get the $8,000 credit/purchase a home for the first time…. Please e mail me at the above address thanks Mike

91. 91
    VHS Says:
    April 8th, 2009 at 1:54 pm

    What defines a “main house” and how is this indicated to the IRS? I just purchased a home this month, have not yet filed my taxes for 2008 and income-wise would qualify for the tax credit, however I can’t move into the home just yet although hopefully will within a few months. Does this mean it is not my “main home”? It will be my home from the 36 month period beginning on the purchase date (I don’t plan on selling it within the next few years), I’m just not sure how long after the purchase date I will actually physically move into the place. Would I qualify, or not?

    VHS

92. 92
    eddie Says:
    April 8th, 2009 at 4:39 pm

    VHS, your main house is a house that you live in. You can’t claim the credit until you have a closing date, after you close.

93. 93
    eddie Says:
    April 8th, 2009 at 4:40 pm

    I would like to know have anyone received there credit yet, and how long did it take to receive it ?

94. 94
    Karen Says:
    April 9th, 2009 at 1:20 am

    I read on the IRS website that if you are a prospective home buyer you can receive the credit now by making adjustment to your W-4, but I’m not sure how to do this. Is there some kind of formula to use in filling it out for this credit? I cannot find any specifics on how to do this.

95. 95
    Karen Says:
    April 9th, 2009 at 1:38 am

    Addendum to #94

    Also, if I receive a portion of the credit via adjustment to my W-4, can I apply for the remainder of credit after closing date?

96. 96
    Kim Says:
    April 10th, 2009 at 10:06 pm

    I filed my taxes married & separate. I am closing on my house next week and only in my name. My husband owes back child support and taxes. That’s why I didn’t file with him. I just read that if I filed married and separate that I can only claim half but the house and loan are only in my name. Is there any way that I can claim the full tax credit?

97. 97
    eddie Says:
    April 11th, 2009 at 12:02 pm

    Can any body tell me how long it’s taken to get the credit back, It’s been a while? Also can you tell me if you can check the status ” wheres my refund” and do you put $7,500, or the amount of your credit? Everytime I check it say’s ” incorrect info added”.

98. 98
    Kelly Says:
    April 11th, 2009 at 1:06 pm

    Eddie,
    Did yu file electronically, or paper? Did you do it yourself, or have someone file for you? I went to a tax professional, who did all of my paperwork, but hasn’t yet filed it, because I haven’t received word that the house is mine yet, and you have to have the address. She said if I filed elctronically, on a Wednesday before 4pm, I would have my money Friday of the next week, approximately 10 days.

99. 99
    Kelly Says:
    April 11th, 2009 at 1:12 pm

    Karen,
    Here is what I found regarding adjusting your W4. I don’t work, so I can’t explain it it to you any differently. It seems their (IRS)biggest concern is if you adjust your W4 to have less taxes taken out, then you don’t purchase and receive the credit, you are then responsible for any taxes owed, since you adjusted your withholdings.

    Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
    Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

    Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

    Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

    The National Council of State Housing Agencies (NCSHA) has compiled list of such programs.

100. 100
     eddie Says:
     April 11th, 2009 at 1:16 pm

     Kelly, I filed by mail.

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