How to Claim the First-Time Homebuyer Tax Credit

Written by Nickel - 295 Comments

Stumble It! Digg It! Tip It! del.ico.us Facebook

Are you eligible for the new $8,000 first-time homebuyer tax credit? Wondering how to claim it? Well, you’ve come to the right place. Earlier today, a sharp-eyed reader named Sonny pointed out that the IRS just issued a revision to Form 5405 yesterday. This form, title “First-Time Homebuyer Credit” walks you through the process of claiming your credit.

In hopes of answering a few FAQs, here are some tidbits from the instructions:

Who Can Claim the Credit

In general, you can claim this credit if you purchased you main home located in the United States after April 8, 2008, and before December 1, 2009 and you (and/or your spouse if you are married) did not own any other main home during the 3-year period ending on the date of purchase. If you build a home, you are assumed to have purchased it on the first day that you occupied it.

Who Cannot Claim the Credit

You cannot claim the credit if your modified adjusted gross income (MAGI) is $95k or more ($170k or more for married filing jointly). You are also excluded if you are a non-resident alien, your home is located outside the United States, you acquired the home gift or inheritance, or you purchased it from a related person. There are also a few other somewhat esoteric exclusion, so be sure to read the form carefully.

Details of the Credit

For homes purchased in 2008… The credit will still be little more than an interest-free loan which will have to be paid back in 15 equal installments starting in 2010. If your home ceases to be your main home before the 15 years is up, you’ll have to pay back the balance in the year in which you move.

For homes purchased in 2009… The repayment requirement is waived as long as it’s your main home for the 36 month period beginning on the purchase date. If your home ceases to be your main home within that 36 month period, you’ll have to pay back the credit in the year in which that happens. There are some exceptions, so be sure to read the instructions carefully.

The amount of the credit is the smaller of $7500 ($8000 for homes purchased in 2009) or 10% of the purchase price of the home. You get the full amount if your MAGI is less than $75k ($150k for married filing jointly). The credit is gradually phased out from $75k-$95k ($150k-$170k for married filing jointly).

What This Means for You

If you’re using a tax pro, make sure they’re up to speed on these changes. They should be, but you can never be too careful. If you’re using tax prep software such as TurboTax or TaxCut, be sure to download any updates (the online versions should be automatically updated). If you do your taxes by hand, be sure to download and use the latest version of IRS Form 5405.

Published on February 20th, 2009 - 295 Comments
Filed under: Economy, Real Estate, Taxes
email this article - bookmark it

About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

Comments (scroll down to add your own):

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.
Comment by Rhiannon — Feb 20th 2009 @ 1:57 pm
Thanks for posting this! I am claiming my $8000 this weekend!
Comment by Kelly — Feb 20th 2009 @ 2:58 pm
Can you clarify for me? For 2008 buyers, its only 7500$?
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
Comment by n double l — Feb 20th 2009 @ 4:02 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.

Comment by nickel — Feb 20th 2009 @ 5:14 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
Comment by N double l — Feb 20th 2009 @ 7:17 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
Comment by Eu — Feb 21st 2009 @ 1:52 pm
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
Comment by david — Feb 22nd 2009 @ 5:02 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.
Comment by thomas — Feb 22nd 2009 @ 11:44 am
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
Comment by Mike — Feb 22nd 2009 @ 12:52 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
Comment by Mark — Feb 22nd 2009 @ 3:45 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,
Comment by Cornell — Feb 22nd 2009 @ 4:48 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.
Comment by Robert — Feb 22nd 2009 @ 6:00 pm
@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.
Comment by Tom — Feb 23rd 2009 @ 11:37 am
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.
Comment by Lee — Feb 23rd 2009 @ 3:29 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?
Comment by Indiecn — Feb 23rd 2009 @ 6:42 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.
Comment by Carye — Feb 23rd 2009 @ 8:15 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
Comment by Mary — Feb 23rd 2009 @ 8:38 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.
Comment by Cameron — Feb 24th 2009 @ 12:18 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?
Comment by Tim — Feb 24th 2009 @ 1:49 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?
Comment by Julie — Feb 24th 2009 @ 5:59 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.
Comment by rick — Feb 24th 2009 @ 6:42 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 ???
Comment by KZM — Feb 24th 2009 @ 8:30 pm
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 <$75,000.
Comment by Daniel — Feb 25th 2009 @ 3:16 am
Great coverage of this credit…it has been very helpful. One thing I have not been able to find is any commentary on filing an extension so one can buy a home in May for instance and still claim it on their 2008 tax return… My wife and I are in this situation (working through a short sale) and do not expect to close until the late April to May time frame. I am assuming I can file an extension and simply make the claim once we close…any input on this?
Comment by Chris — Feb 25th 2009 @ 11:09 am
If I recieve this 8000$ 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.
Comment by Wander — Feb 25th 2009 @ 2:26 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…
Comment by Jason — Feb 25th 2009 @ 3:25 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
Comment by KZM — Feb 25th 2009 @ 3:42 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.
Comment by Kristy — Feb 25th 2009 @ 4:14 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!
Comment by Chris — Feb 25th 2009 @ 4:15 pm
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!
Comment by Erica — Feb 26th 2009 @ 11:30 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.
Comment by Erica — Feb 26th 2009 @ 11:40 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.
Comment by Erica — Feb 26th 2009 @ 11:49 am
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?
Comment by Joanne — Feb 26th 2009 @ 1:11 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?
Comment by Meg — Feb 26th 2009 @ 1:12 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.
Comment by Erica — Feb 26th 2009 @ 1:27 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.
Comment by Erica — Feb 26th 2009 @ 1:29 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.
Comment by Paul — Feb 26th 2009 @ 3:24 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?
Comment by Joanne — Feb 26th 2009 @ 3:25 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)?
Comment by jennifer — Feb 26th 2009 @ 4:41 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.
Comment by Erica — Feb 26th 2009 @ 6:06 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.
Comment by Joanne — Feb 26th 2009 @ 7:16 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.
Comment by Erica — Feb 26th 2009 @ 7:30 pm
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.
Comment by Bill — Feb 27th 2009 @ 2:38 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.
Comment by Bill — Feb 27th 2009 @ 2:48 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.
Comment by Bill — Feb 27th 2009 @ 2:54 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.
Comment by Cameron — Feb 27th 2009 @ 10:14 am
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
Comment by Chris — Feb 27th 2009 @ 12:24 pm
Opps,
One more thing:
Is there a minimum down payment that needs to be made in order to get the credit?
Thanks
Comment by Chris — Feb 27th 2009 @ 2:51 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?
Comment by katman2 — Feb 27th 2009 @ 6:28 pm
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?
Comment by sarah seoh — Mar 1st 2009 @ 2:20 am
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
Comment by James — Mar 2nd 2009 @ 1:40 pm
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!
Comment by Sebastian — Mar 3rd 2009 @ 10:18 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
Comment by Allen — Mar 3rd 2009 @ 11:37 am
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!
Comment by Dan — Mar 4th 2009 @ 4:57 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.
Comment by Beverley — Mar 5th 2009 @ 9:07 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?
Comment by Vanessa — Mar 5th 2009 @ 10:55 pm
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.
Comment by Jon — Mar 6th 2009 @ 12:02 am
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?
Comment by alexa — Mar 6th 2009 @ 1:54 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?
Comment by Melinda — Mar 7th 2009 @ 12:12 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?
Comment by Jessica — Mar 7th 2009 @ 8:30 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!
Comment by Alex — Mar 8th 2009 @ 2:27 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.
Comment by shawna — Mar 8th 2009 @ 8:47 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?
Comment by Joanie — Mar 9th 2009 @ 6:38 pm
i bought the house in Febuary 28 2008, do i get some credit back??????
Comment by rani singh — Mar 10th 2009 @ 2:32 pm
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
Comment by EM — Mar 11th 2009 @ 11:08 am
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.
Comment by Dustin — Mar 11th 2009 @ 10:35 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?
Comment by Joanie — Mar 13th 2009 @ 1:28 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
Comment by Joyce — Mar 13th 2009 @ 2:41 pm
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.
Comment by Tim — Mar 16th 2009 @ 8:58 am
My closing date was 12/29/08. Moved into the house after Jan 1st, 2009. Am I only eligible for the $7500 credit?
Comment by JJ — Mar 17th 2009 @ 7:00 pm
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?
Comment by eddie — Mar 25th 2009 @ 8:10 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?
Comment by Scott — Mar 25th 2009 @ 11:23 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.
Comment by eddie — Mar 25th 2009 @ 11:31 am
Hello. Can I claim the credit without purchasing a house, then use the $8000 as down payment??
Comment by Chasen — Mar 25th 2009 @ 12:09 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.
Comment by eddie — Mar 25th 2009 @ 12:15 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?
Comment by Chasen — Mar 25th 2009 @ 12:36 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.
Comment by eddie — Mar 25th 2009 @ 12:49 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?
Comment by mary a. — Mar 26th 2009 @ 10:34 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.
Comment by Kelly — Apr 2nd 2009 @ 2:22 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??????
Comment by chasen — Apr 2nd 2009 @ 4:15 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.
Comment by eric — Apr 2nd 2009 @ 9:43 pm
Eric, yes you can still claim the credit.
Comment by eddie — Apr 3rd 2009 @ 8:10 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.
Comment by Kelly — Apr 3rd 2009 @ 11:15 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.
Comment by Kelly — Apr 3rd 2009 @ 11:19 am
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
Comment by Chasen — Apr 3rd 2009 @ 2:12 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
Comment by Kelly — Apr 3rd 2009 @ 2:41 pm
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.
Comment by Robin — Apr 6th 2009 @ 11:22 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.
Comment by Kelly — Apr 6th 2009 @ 11:43 am
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?
Comment by Andrea — Apr 6th 2009 @ 3:38 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
Comment by Mike Bloom — Apr 6th 2009 @ 7:44 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
Comment by VHS — Apr 8th 2009 @ 1:54 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.
Comment by eddie — Apr 8th 2009 @ 4:39 pm
I would like to know have anyone received there credit yet, and how long did it take to receive it ?
Comment by eddie — Apr 8th 2009 @ 4:40 pm
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.
Comment by Karen — Apr 9th 2009 @ 1:20 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?
Comment by Karen — Apr 9th 2009 @ 1:38 am
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?
Comment by Kim — Apr 10th 2009 @ 10:06 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”.
Comment by eddie — Apr 11th 2009 @ 12:02 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.
Comment by Kelly — Apr 11th 2009 @ 1:06 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.
Comment by Kelly — Apr 11th 2009 @ 1:12 pm
Kelly, I filed by mail.
Comment by eddie — Apr 11th 2009 @ 1:16 pm
Kim,
Everything I find says if you file married filing seperate, you only receive $4,000. It’s good on so many levels, in my opinion, that you are putting the home in only your name, no offense intended on your husband. Back child support, along with Taxes and Student loans, never ever go away. After you get squared away in your new house, perhaps you could make payment arangements with Child Support and Taxes, and one day get rid of those.
Comment by Kelly — Apr 11th 2009 @ 1:18 pm
Eddie,
Here is what I found for you. It looks like six weeks, but in my opinion could be longer because of all the first time homebuyers.The links won’t work, so here is the address I found the info on. You can cut and paste it if you would like to get to the link for check my status.
http://www.irs.gov/taxtopics/tc152.html

If you file a complete accurate tax return, your refund will be issued within six weeks from the received date. If you filed electronically, refund checks will be issued within three weeks after the acknowledgment date. Refunds from amended returns will be issued within 8–12 weeks. Injured spouse claims can take longer, depending on the circumstances. Refer to Topic 203 for more information concerning Injured Spouse Claims.

To check on your refund, go to “Where’s My Refund” or call the Refund Hotline at 800–829–1954. Please allow 4 weeks after you mail your return before calling this automated system. When you call, you will need to provide your Social Security number, your filing status, and the exact whole dollar amount of the refund shown on your return. There are several reasons for delayed refunds. Refer to Topic 303 for a checklist of common errors when preparing your tax return, and for additional items that may delay the processing of your return.

If you receive a refund to which you are not entitled, or one for an amount that is more than you expected, do not cash the check until you receive a notice explaining the difference. Follow the instructions on the notice.

On the other hand, if you receive a refund for a smaller amount than you expected, you may cash the check, and, if it is determined that you should have received more, you will later receive a check for the difference. If you did not receive a notice and you have questions about the amount of your refund, wait two weeks after receiving the refund, then call 800–829–1040.

The IRS will assist you in obtaining a replacement check for a refund check that is verified as lost or stolen.
Comment by Kelly — Apr 11th 2009 @ 1:31 pm
I bought a house march 2008 but I have already done my taxes. Can I still get the tax credit??
Comment by Sarah Summers — Apr 13th 2009 @ 12:56 am
I’m going to be closing in mid may wondering if I can claim it right after closing. 2 is it valid in the state of new York 3 also is 2009 a credit or does it have 2 be paid back
Comment by Mike — Apr 14th 2009 @ 1:41 pm
Can mobile home that requires property rental qualify as a primary residence for the purposes of the new $8,000 tax credit?
Comment by Eloine — Apr 14th 2009 @ 1:56 pm
I am just wondering how anyone believes it is acceptable to get a tax credit on a home that you do not own yet. You have not acquired the propety until title is tranferred to you. Any number of things can happen to have a real estate contract or loan application fall through. I have heard so many people say that it is acceptable to use the tax credit for closing costs on the property you told the IRS that you have already acquired. It does not make sense to me at all. If there is information out there that confirms it is acceptable, will someone please direct me to it?
Comment by Tracy — Apr 15th 2009 @ 10:20 am
To clarify my last statement, I am talking about individuals who file an amended tax return along with the IRS 5405 form, not the individuals who adjust their W-4 withholding amount.
Comment by Tracy — Apr 15th 2009 @ 10:29 am
Did anyone ever answer JJ’s comment from March 17th? I have a similar situation. Thanks!

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

Comment by JJ — Mar 17th 2009 @ 7:00 pm “
Comment by Julie — Apr 15th 2009 @ 11:03 am
How in the heck did a 19 year old opiate junky who dropped out of school and has never held a job longer than a week (and obviously hasn’t purchased a home) file for this tax credit and immediately walk away with $8,000 in his pocket!? He says that all of his buddies are doing it, too!

How many people out there are committing this tax fraud and isn’t there any documentation that is required with the tax return to get this credit?
Comment by Crystal — Apr 15th 2009 @ 12:26 pm
We bought a junky $15,00 14×70 single wide on a rented lot in a trailer park 6 years ago when we were first married, and we still live in it. Reading the form it seems that we are now exempt from the credit and incentive to buy a house.

A trailer house is titled like a car, and is taxed like personal property. You can qualify for FHA loans on a house if you already own a mobile. How then can the IRS exempt you from this credit on those grounds? I can’t seem to find anyone (including CPAs) that say anything but we don’t qualify on the basis of already owning a “primary residence” even though its just a trailer. We want to buy a house this year and consider ourselves first time homebuyers. Do we qualify or not?
Comment by Krista — Apr 16th 2009 @ 12:33 am
Crystal,
I can’t give you an exact number on how many people are taking the tax credit, that are not eligible. I can tell you I know it is happening, and do not get discouraged,because I believe the IRS is flooded with these right now so they are processing the payments, and asking questions later. I know it seems unfair, but believe me, the IRS WILL find out one day, one way about people that received the money illegally,and they will have to pay it back, along with fines, and possible fraud charges, and jail time. If they mailed their return, that will be mail fraud. If they e-filed, they will have wire transfer charges. The IRS is not someone you want to cheat. Ask Wesley Snipes. They always find out.
Comment by Kelly — Apr 16th 2009 @ 9:13 am
Can you please answer my two questions?
1. My wife and I presently own a home, and we are building a new home this year. Can we get the 8,000 tax credit on the new home.

2. If my wife and I sell our present home to our son, we he be able to get the 8,000 tax credit.

Please let me know
Comment by Gaspar Garces — Apr 16th 2009 @ 11:39 am
My tax preparer did not inform me about the first time home buyer tax credit. I just learned about this while(for the first time) visiting your site. My situation is this: My husband and I bought the house in July,2008, for $222,400, now, it is worth $165,000. We did necessary improvements worth $10,000 made with our credit cards.
That $7,500 tax credit will really help us pay our credit cards. What can I do so we can claim the tax credit now?..If there is nothing I can do, Can I still claim it for 2009?
From this experience, I learned that I should do my research and not rely on somebody to know everything about their job(listen, tax preparer).
Comment by Tikaykay — Apr 16th 2009 @ 12:39 pm
I filed my amended return on Feb 10 for the Home Buyer Tax Credit (8000). I still haven’t received my credit. Has anyone actually received the credit from a mailed amended return?
Comment by Debi C — Apr 17th 2009 @ 7:34 pm
I am a mortgage lender and have been asked the following by a customer:
He is currently buying a home on contract. The house has not been deeded to him and would not be until the contract price has been paid in full. The contract is a recorded document. Since he is not in title to the home he is purchsing via contract, if he buys a new home to live in would he qualify for the tax credit?
Comment by Judith — Apr 17th 2009 @ 10:13 pm
Sarah,
Yes, but you need to file an amended return. Effective March 30, 2009 the IRS can receive the forms electronically. Log on to the IRS website. All necessary forms along with instructions can be found there.
Comment by Debi C — Apr 17th 2009 @ 10:32 pm
Gaspar,
Q#1 – Sorry, the credit if for “First Time Home Buyers”. If you currently own a home you wouldn’t qualify for the credit.

Q#2 – If your son purchases from you – he would not qualify for the credit because the purchase cannot be from a relative. He may qualify if he purchased from someone else – assuming he meets all the other requirements.
Comment by Debi C — Apr 17th 2009 @ 10:39 pm
Gaspar,
Do you live in California? If so, there is a different tax credit that is for new home purchases. It’s for $10,000 divided over the next three years. May want to check into that one. There is no “First Time” stipulation for this credit.
Comment by Debi C — Apr 17th 2009 @ 10:43 pm
Mike,
Yes, you can file an amended return if you have already filed your regular one the same day as closing.

Yes, it is valid in NYC

And yes it is a credit and does not have to be paid back (last years had to be paid back and it was $500 less)

Note: Amended returns take forever – still waiting for mine since April – but I paper returned because electronic was not available at the time.
Comment by Debi C — Apr 17th 2009 @ 10:51 pm
Joyce,
The $10,000 credit is for new homes purchased in California. I know it doesn’t have the “First Time” requirement but I’m not sure if a new mobile home is acceptable. If you live in CA – check out that credit instead of the one discussed on this page. I know it is not a lump sum and is divided over the next three years with no payback on the credit – but that’s all I really know. Hope you get your new home and all the furnishings along with it.
Comment by Debi C — Apr 17th 2009 @ 11:10 pm
Joanie,
I see no where that states you must purchase through any specific lender. I have thoroughly researched this credit to make sure I was eligible and as long as this “landlord” is not related to you – you should be fine.

Note: Absolutely none of the paperwork I filled out for this credit asked my who my lender was. If I were you – I would log onto the IRS website, fill out the 5405 (and the 1040X if you are amending) then efile all of it. DONT mail it – that takes forever. Mailed mine Feb 10th and am still waiting.
Comment by Debi C — Apr 17th 2009 @ 11:20 pm
Tikaykay,
There are income guidelines. If you meet the income guidelines, I believe you are eligible, as long as you have not owned a home in the prior 3 years. Good luck. I plan to pay my debt cards off as well.
Comment by Kelly — Apr 18th 2009 @ 1:37 am
After much research I am still not clear if I will be eligible for the $8,000 tax credit. My divorce will be final in May 09. I owned and have lived in a home with my ex husband that I am now selling to purchase another home. Do I qualify?
I also read somewhere if i purchased it with another person who has never owned a home I would qualify-is that true?
Comment by Lee Malone — Apr 20th 2009 @ 9:06 am
How long after fileing does it take to recieve your check?
Comment by Heather — Apr 20th 2009 @ 1:40 pm
Lee,
You are not eligible, because you already own a home that you are selling. This credit is for FIRST TIME homebuyers. First time homebuyers are those who have not owned a home in the last three years.

Who Can Claim the Credit
In general, you can claim this credit if you purchased you main home located in the United States after April 8, 2008, and before December 1, 2009 and you (and/or your spouse if you are married) did not own any other main home during the 3-year period ending on the date of purchase. If you build a home, you are assumed to have purchased it on the first day that you occupied it.
Comment by Kelly — Apr 20th 2009 @ 4:50 pm
Kelly,
You seem to be knowledgeable about this program. Can you look at my question, #49, and give your opinion?
Thanks
Comment by Katman2 — Apr 20th 2009 @ 5:11 pm
Hey fellow patient taxpayers,

I FINALLY RECEIVED THE CREDIT TODAY :O)))

I was beginning to think it would never come.

In any case, here is a recap – hope it helps

Filed original taxes in Jan/09
Received normal refund 3 weeks later.
Filed amended return for the tax credit Feb 10, 2009
Received it today (4/20) – but it was only for the 7500 because the updated form was not available when I filed.
I still have to amend for the other 500 – but hey, 7500 is sure going to help right now.

Note: I did all the filing myself – and paper mailed the home buyer credit because efile was not available for that in Feb. I strongly suggest efile – it takes way less time for the refund to get back to you.

Good luck everyone,
Debi
Comment by Debi C — Apr 20th 2009 @ 8:16 pm
Wow that was a long time Debi. The only thing is you cant efile an amended return according to the conversation I had with the IRS, but if you are filing a orginal then you can e file it.
Comment by eddie — Apr 20th 2009 @ 8:37 pm
Ok, we purchased a live in/work unit from a owner in Sept. or 2008. It had only been 2 years since we owned a house. However we will be getting a loan on the house this summer (thus being 3 years) and will build a house that we will actually live in (we did not live in this unit simply used it for work) this summer after the 3 year mark. While being built we are going to live in the live in/work unit! Will either of these properties be considered for this credit?
Comment by Nicole — Apr 20th 2009 @ 8:38 pm
I purchased a house rent to own in 2007… Can I get any tax credit?
Comment by Sarah — Apr 21st 2009 @ 12:18 am
Sarah this credit is for 2007 and 2008.
Comment by eddie — Apr 21st 2009 @ 10:05 am
Can I get the tax credit if I filed my taxes already in late FEB? If so how? What paper work do I need?
Comment by Sarah — Apr 21st 2009 @ 11:47 pm
i have a question could i do form 5405 myself and send off the paper work or do i have to go to place of business?
Comment by April — Apr 28th 2009 @ 11:02 pm
April you can file it yourself.
Comment by eddie — Apr 29th 2009 @ 1:55 pm
Have anyone beside debi received there amended return for the first time home buyers credit besides Debi, and how long did yours take? I been waiting about 6 weeks.
Comment by eddie — Apr 29th 2009 @ 1:58 pm
i recieve mines on the beging of my 7th week i was shock! eddie.
Comment by April — Apr 29th 2009 @ 8:58 pm
About how long would it take to get back the first time buyers credit. It seems from other comments about 2 months give or take…anyone else recive it sooner?
Comment by jasmine — May 3rd 2009 @ 9:22 pm
I am closing this week on my house in long Island Ny. Does this mean I can amend 2008 and get the 8.000 creit. i’m a bit confused!
Comment by Charlie — May 4th 2009 @ 2:25 pm
Charlie if you already have filed your taxes now you have to amend your taxes to add the first time home buyers credit. Being that you close in 2009 you will get the 8,000 if your eligible but you have to first close on your hous because you have to have a closing date. Things can go wrong sometimes so make sure you wait until you close.
Comment by eddie — May 4th 2009 @ 2:31 pm
I will close on the 19 of May,and i know that i can amend my taxes but how do i go about that? What forms do i use ? Do i go with who prepared my taxes or do i do it on my own i am confused!!!
Comment by Claudia — May 5th 2009 @ 12:36 am
Claudia you need form 5405 and either 1040x or what ever 1040 you used and amended it. You can ask the IRS to send it to you, its easy or you can ask your preparer to do it.
Comment by eddie — May 5th 2009 @ 5:15 am
claudia to file your amend you use form 1040x and form 5405 you can either do it yourself or if you not clear on it go to the person who filed your taxes.
Comment by April — May 5th 2009 @ 10:05 am
Can anyone tell me what would happen in the following scenario?

Filed: 1040x (Ammended return)
5405 (First time Homebuyer Credit)

Construction completion and subsequent closing: early September
If my “Date acquired” is Sep 14 2009 will they wait to send my check or will they just reject it? Thanks, Dale
Comment by Dale — May 6th 2009 @ 7:43 pm
Dale they will reject it because its not oficially yours until you actually close, even though you have the date.
Comment by eddie — May 7th 2009 @ 9:21 am
This is what happens to idiots who attempt to defraud the IRS by fraudulently claiming tax credits. You may think you got away by claiming the credit before closing on a home but eventually you will be caught.:

http://abclocal.go.com/kgo/sto.....id=6789702
Comment by Sean — May 7th 2009 @ 5:50 pm
Ummm…can anyone give me better news than Eddie or Sean?

I was hoping to see something along the lines of:
“Yes they will send your check immediately” or
“check’s in the mail” or
“FYI, the credit has been doubled”

Thanks anyways guys -Dale
Comment by Dale — May 7th 2009 @ 9:42 pm
don’t know who eddie is getting at but its alot of crooked people in the world just have to let them live they life.
Comment by April — May 7th 2009 @ 10:13 pm
Um no you won’t be getting anything, what part of CLOSING DATE don’t you understand. There is no credit for an ASSUMED CLOSING DATE. The IRS is going to request your HUD1 Statement and you’ll be SOL guaranteed. FRAUD!!!!!!!!!
Comment by Sean — May 7th 2009 @ 10:26 pm
dale theres a 800 number u can call in get the status of your amend.
Comment by April — May 7th 2009 @ 11:24 pm
I just closed on my house last week. I know that I qualify for the $8,000 1st time home buyer credit. Do I have to wait until next year’s tax season before I can get the credit, or is there a way I can get it now? Thanks!
Comment by Kerri — May 12th 2009 @ 9:53 am
I just wanted to add a comment for those who are wondering how long it takes to receive the tax credit. I mailed my amended 1040X and form 5405 on 3/20/09. Today is 5/12/09 and I still have not received my credit. I called the IRS today to find out the status and they said it could take up to 12 weeks for my paperwork to make it into the system before they can begin processing. The IRS rep said that they are extremely busy with all the amended returns that have been coming in and that it could take up to 16 weeks to get the credit. UGH!
Comment by Diane — May 12th 2009 @ 10:38 pm
Asking for my sister. She owns a $14k mobile home and would like to get into a more permanent housing situation. She bought the mobile home 3.5 years ago.

Will she not qualify for this credit because she has the mobile home?
Comment by Heather — May 13th 2009 @ 3:02 pm
Heather,
I believe the rules are you can’t have owned a home in the last 3 years. Call the IRS-they can tell you for sure.
Good luck to your sister
Comment by Kelly — May 13th 2009 @ 3:04 pm
I filed my amended return for this credit on March 24, 2009. . .up until last week, it wasn’t even in the system that the IRS had rec’d it (I was worried). . .this week, I called (it’s been 8 wks today), and they told me it was being worked on, and that everything looked good, and things were rolling along. They didn’t have a specific date for me as to when the check would be sent out, all she would tell me, was by June 18 (12 weeks). . .or possibly sooner. Anyone know of how long AFTER your 1040x was being worked on, your check would be sent out. Also, if they mail a check on a friday, when should I expect the check in my mailbox?? I usually get DD, but since this was an amended return, that’s not an option.
Comment by aw — May 21st 2009 @ 8:43 am
I filed my amended return on March 27th. I am being told the same as above at least 12 weeks before I could be entered into the system. How nuts is that. Its like they throw you a bone and yank it away a little at a time. Geez
Comment by Chuck — May 22nd 2009 @ 5:52 pm
My wife and I purchased a home in September 2008 from her dad at $110,000. The IRS instructions say that you cannot buy it from a parent and claim the First Time Homebuyers Tax Credit. If we file separate returns can I claim the deduction for 1/2 of the credit since I am not a blood relative of her dads?
Comment by Bill — May 24th 2009 @ 11:45 pm
DOES ANYONE KNOW HOW TO GET THE MONEY BACK FROM PURCHASING A HOME IF YOU GET DISIABLITLY CHECKS AND DON’T GET A TAX CREDIT?>
Comment by poe — May 28th 2009 @ 11:40 pm
ok I am gettting somewhere now. I called irs friday. Its been 2 months since I mailed my amended return. They are telling me they have received it now but won’t tell me when I should get it in the mail. At least they got it.
Comment by Chuck — May 30th 2009 @ 9:44 pm
Quick question for all the people that already got there 8000.00 tax credit. How long did it take to get the money i’m closing on the 12th of june and i would love to have it before i close next friday. please commnet me back if you know
Comment by Tabby — Jun 2nd 2009 @ 9:01 am
tabby you won’t get the credit until after you close. You will need to file an amended tax return. You have to close before you can do that. After you file it will take at least 8 weeks for them to show they received it and up to 16 weeks total for you to get the return. Trust me its a very slow process!
Comment by Chuck — Jun 2nd 2009 @ 5:26 pm
I filed already April 30th, for my 8000.00, and also i had a accountiant , but it would nice to have the money now. there is so many things i want to do with the house.
Comment by Tabby — Jun 2nd 2009 @ 10:12 pm
I e-filed with an accountant, on 4May,and chose direct deposit. I closed on 27May, and had by then received a letter from the IRS saying they had my return, and it was being reviewed. then they requested my Hud 1 form, after saying I was randomly chosen for a review. I faxed the Hud 1on the 28th. I called today and was told that they are processing return they received in March, and it will be 6-8 weeks before I receive my refund!!!
Comment by Kelly — Jun 3rd 2009 @ 12:32 am
I just closed on a home last week. How do I go about claiming the 8K? Thanks!
Comment by Kristina — Jun 3rd 2009 @ 9:04 am
I would like to know if I am eligable to for the 8k credit. My Mother has the loan on the house we live in. She quit claimed deed the house to me in 2004. Though she claims all the tax credits/interest deduction for the house. In 2008 my husband and I took out a small loan against the house. I am now wanting to refi both loans into one. The loan in my moms name has a bal of 46k and the loan me and my husband have is 25k. The house is valued at 135k. Will the credit only be for the loan amount we finance, say 75k or the actual value of the house? Also, do we qualify for the credit based on this? TYIA
Comment by Laura — Jun 4th 2009 @ 11:04 pm
Do anybody know what form is used to report the deadlines of your home?
Comment by April — Jun 10th 2009 @ 6:53 pm
How long it takes for amendment for filing for 8000.00 1st home buyers credit. I closed on March 27th 2009. I mailed returns on March 29th. It took them 8 weeks to be able to tell me they received it. I just called yesterday and they are telling me my check is being mailed June 19th. So approx 10 weeks total waiting time. Just for those of you who want to know, don’t count on money to come to you fast from irs. If you are calling them to check on status you have to act like you are going to ask them a questions on how to prepare your taxes. I believe 1-800-829-1040 Option #1 then I think option #4. Don’t hold me to that! Good luck!
Comment by Chuck — Jun 10th 2009 @ 7:10 pm
if the irs said they recieved it how long after should u receive somthing?
Comment by April — Jun 12th 2009 @ 4:11 pm
If they said they received it. Give them a week and call back and see if they have a mailing date for you yet.
Comment by Chuck — Jun 12th 2009 @ 11:29 pm
my 2008 income qualifies me for the 8k credit, however my 2009 income wont. can i buy anytime this year before dec 1, 2009 and simply amend my 2008 income to get the 8k? or do i have to buy and close escrow by a certain date to be able to use my 2008 income?
Comment by riesling — Jun 15th 2009 @ 1:36 pm
I have the same question as Cameron (#18 and #46).
I have not owned a primary residence for the last 3 yrs. If I purchase and move into a primary residence in 2009, I qualify for the first-time home buyers tax credit of up to $8000. If I sell this home within 3 yrs, I must pay back the tax credit.

However, if I rent out this primary home within the first 3 yrs, must I also pay back the tax credit? If so, is the payback amount prorated for the fraction of 3 yrs it was my primary residence?
Comment by Tessa — Jun 17th 2009 @ 3:00 am
Cameron,
I found the answer for both of us. This came from the IRS’s Form 5405. In essence, we would have to repay the tax credit if we rent out our primary residence within 36 months of purchasing it.

“Homes purchased in 2009. You must repay the credit
only if the home ceases to be your main home within the
36-month period beginning on the purchase date. This
includes situations where you sell the home, you convert
it to business or rental property, or the home is
destroyed, condemned, or disposed of under threat of
condemnation. You repay the credit by including it as
additional tax on the return for the year the home ceases
to be your main home. If the home continues to be your
main home for at least 36 months beginning on the
purchase date, you do not have to repay any of the
credit.”
Comment by Tessa — Jun 17th 2009 @ 3:13 am
The IRS recieved my amended Tax Return for the first time homebuyers program on 4/15/2009, when should I be expecting my 8,000 dollar check for my closing which is less than 3 weeks away?
Comment by Pat — Jun 21st 2009 @ 5:30 am
Pat mine was received on April 4th 2009 they said my check was to be mailed 6/19/09. I haven’t seen it yet. Also from my understanding you already had to close on the house to be able to get the rebate. You may want to ask them that and make sure they just aren’t blowing smoke your way! Chuck
Comment by Chuck — Jun 21st 2009 @ 7:20 am
My amendment was received on April 4th 2009 and the IRS told the me other day that I will be getting a letter in the mail…. something to do with 86c letter…. I have not got the letter yet…H&R done my amendment.. so i guess they done the right thing…. Has anyone had this trouble?
Comment by Eric — Jun 21st 2009 @ 8:56 pm
Eric. Have you closed on the house yet? My admendment was received the same day as yours. I was told my check was mailed June 19th. I never got a letter in the mail?
Comment by Chuck — Jun 21st 2009 @ 8:58 pm
yes…. i closed on it march 30th…. letter is form # 86c…. and the only they told me that it was getting transfer to another dept…
Comment by Eric — Jun 21st 2009 @ 9:00 pm
Eric do a search on 86c irs letter. It appears it is something to do with you being audited. Just from the findings. I was hoping to get my check saturday but didn’t I will keep you posted since our dates are the same. Good luck, Chuck
Comment by Chuck — Jun 21st 2009 @ 9:03 pm
well i dont know why they would audited me… im only 23 and just graduated out of college…. soo I dont know……
Comment by Eric — Jun 21st 2009 @ 9:04 pm
Dont take it personal its random. I will do some research for you and keep you posted.
Comment by Chuck — Jun 21st 2009 @ 9:11 pm
ohhh i ant taken it personal…….. im trying to find out what i may done wrong…… only thing is that i filed the amendment under me… and me and my girlfriend at the time bought the house together… I dont know if that has anything to do with it……….
Comment by Eric — Jun 21st 2009 @ 9:15 pm
yes that could have everything to do with it. I believe you would both have to file for the credit. 1/2 to one and 1/2 to the other. Thats probably the issue.
Comment by Chuck — Jun 21st 2009 @ 9:18 pm
well i have been doing research on that…. they said we can 1/2 it like you said… or one of use can take the full credit…… i saw that on 3 different sites…… if that is the case… then i guess my wife would just give her rights up then………..
Comment by Eric — Jun 21st 2009 @ 9:22 pm
Hey Chuck I didnt get that letter 86c, and When i spoke to the IRS they said everyhing was good in there system, but someone did tell me that they mail out the check twice a month this month i think the dates were the 5th and the 19th so I may be getting mines soon since my date and your date is around each other.. let me know what you think..
Comment by Pat — Jun 22nd 2009 @ 4:14 am
I’m a first time home buyer. The house I have a contract on has more rooms than I need. If I rent one or two rooms out, would the house still be considered my primary residence that I can keep the $8,000 credit? I certain don’t have another place to live.
Comment by Anita — Jun 22nd 2009 @ 5:18 pm
FYI. I mailed my amended return out on 3/20/09. I began calling the IRS beginning at week 8 and it wasn’t until week 12 when they told me that they received my amendment and it was being processed and that it would take an additional 3 weeks until I would see the check. UGH! However, my friend told me that she received her check tonight and she mailed her amendment 4 weeks ago. I asked her what she might have done different than me. She said she sent her return to Austin, TX. I mailed mine to Fresno. We both live in Orange County, California.
Comment by Diane — Jun 22nd 2009 @ 10:23 pm
Hi,

I am in the process of amending my 2008 taxes and filing form 5405 for the first time homebuyer credit. I am wondering, before I send in the forms, is there any other paperwork that I need to accompany the ameneded tax return form and form 5405? Do I need to send any copies of settlement paperwork or proof of purchase or do I just send the forms? I have been searching everywhere and read the instructions on all forms and can’t seem to find an answer. If you know please inform. Thank you!
Comment by Jamie — Jun 25th 2009 @ 9:49 pm
I am purchasing a house on land contract and my husband recieves disability that is our only income are we eligible for the credit? we sign the papers next thursday. is his income eligible income for the tax credits and is a land contract home eligible?
Comment by Gwyn — Jun 25th 2009 @ 11:37 pm
JAMIE:

I filed my 2008 amended return after purchasing our home on April 13th and the only thing I sent in was the 1040X and Form 5405. I have been checking with the IRS and I was first told it was received April 19th, approved June 13th and yesterday I was told that the check would be mailed out on July 3rd. What really shocked me was that the check includes 60 dollars and some odd cents for interest because it was for 2008 – that I wasn’t expecting and I did not hear anyone on this blog (or any other I’ve read) mention that. Haven’t actually received the check but hopefully it will be in the mail next week at this time.

Patty
Comment by Patty — Jun 26th 2009 @ 6:17 pm
Patty,

Which IRS location did you mail your amended return to? Because I mailed mines to the ATL, GA location and they received mines on 04/15/2009, but I didnt get a date on when my check would be mailed out to me, maybe you can give me some insight..
Comment by Patrick — Jun 26th 2009 @ 9:07 pm
Patrick:

I had to go back & look it up (the memory ain’t what it used to be!) but it goes by what state you live in. I’m in West Virginia so mine went to Kansas City, MO. I just kept calling every few weeks and like I wrote, finally yesterday they told me when the check would be sent out. I don’t know if this is true but somewhere I read that they were only sending the checks out every other Friday and I read on another site that a peron has received their check on the 22nd of June so that would make sense. I will just be happy when the check is in my hand!

Patty
Comment by Patty — Jun 26th 2009 @ 9:29 pm
patty:

o.k thanks i’ll be on the look out I guess
Comment by Patrick — Jun 27th 2009 @ 12:12 am
My fiancee and I are having our house built. Estimated completion is early September. We spoke with an accountant who stated we would be able to get the $8,000 before closing. All we needed to do was submit copies of the mortgage agreement that proves we’re going to purchase the house.

The accountant submitted the 1040x amendment on 5/29…..nothing yet. I was under the impression that this would take 2-3 weeks, but after reading all these posts I can see I’ll be in a world of hurt for awhile. That’s what happens when you trust the government. There is NO reason it should take 12 weeks to write a check. It’s completely indefensible.

I’ll try calling the 1-800 number, but I’m not expecting any good news from these crooks.
Comment by Brittle Fingers — Jun 29th 2009 @ 10:16 am
Brittle Fingers – The IRS finally received my 1040X amendment (I submitted it on 3/20/09 – more than 12 weeks). It also turns out I am one of the lucky ones that was chosen for a random audit. This will involve a letter that will be mailed to me within 30 days outlining the supporting documentation I need to provide to prove my purchase. I think I will be lucky if I receive the $8,000 by end of September. However, on the bright side I had a friend who received her check (plus interest) in 4 weeks so there is some hope that you will recieve your check soon, too. On another note, the State of California has funded a tax credit program for purchasers of newly constructed homes ($100,000,000). This program is offered on a “first come, first served” basis. Purchasers of newly constructed homes receive a $10,000 tax credit. However, you must close escrow first then file the required paperwork within a week of close. Also, the total tax credit is equal to five (5) percent of the purchase price or $10,000 whichever is less. In addition, the tax credit is given in equal amounts over 3 successive taxable years at $3,333 per year beginning with taxable year 2009. Good luck and congrats on your new home.
Comment by Diane — Jun 29th 2009 @ 10:56 pm
Thanks Diane.

FYI, I did call the 1-800 number but was “told” (by a recording) that they had not even processed my request yet.

It sucks because my fiancee and I bought this house on the condition that we’d have the $8,000 by August. Since it appears this will be going slower than a snail’s pace, we’ve saved more and now have enough money to cover builder’s expenses by the move-in date. Problem is, now we need that $8,000 to go towards our wedding.
Comment by Brittle Fingers — Jun 30th 2009 @ 2:48 pm
Gwynn,
Yes you and your husband are eligible for the credit. You have to close on the home first, as the IRS needs to see the HUD 1 form. I also receive SS disability and VA disability. Good Luck!
Comment by Kelly — Jun 30th 2009 @ 6:07 pm
hey diane

what’s the 800 number you used to check your status? Maybe I can call it to see what’s my status
Comment by patrick — Jun 30th 2009 @ 7:30 pm
Hey everyone,

To my (extremely pleasant) surprise, I received my refund check today! It also included $27 of interest.

I take back everything I said about the government! (lol)

So, for those currently waiting and wondering, that marked one day short of 10 weeks from the date we mailed in the paperwork.
Comment by Brittle Fingers — Jul 6th 2009 @ 5:57 pm
CORRECTION ON MY LAST POST…..

It was one day short of 6 weeks, not 10 weeks.
Comment by Brittle Fingers — Jul 6th 2009 @ 6:10 pm
Does owning and living in a single wide mobile home trailer with wheels attached, located in a mobile home park,taxed by the local goverent authority as personal property, not Real Property or Real Estate, preclude the owner receiving the $8,000 tax credit if they sell the mobile home and purchase Real property or a stick built home?
Comment by Arnie Henrickson — Jul 8th 2009 @ 3:03 pm
What if I already filed my 2008 taxes, can I still file for the $8000 tax cut before next year? We are closing on a home Aug, 2009.
Comment by donna — Jul 8th 2009 @ 4:13 pm
donna,

Yes, assuming you’re a first-time home buyer. That sounds like the exact situation I was in.

I would suggest you contact an accountant for assistance through the process. He/she would then file an amendment to your ‘08 tax return.

Our accountant only charged us $75 for his services…..to me it was more than worth it to get the $8,000 so soon.
Comment by Brittle Fingers — Jul 9th 2009 @ 8:40 am
mail amended on april 15 they got it april 18
Comment by mary — Jul 9th 2009 @ 3:26 pm
i have not recevied my amended check as of yet. it have been mailed over 12 weeks. what take so long to
do a refund.
Comment by mary — Jul 9th 2009 @ 3:34 pm
Mary, You need to call them. They mailed ours to our old address. They will not forward the check to your new home. It goes back to them and sits there till you call. 1-800-829-1040 keep hitting buttons till you get someone!
Comment by Chuck — Jul 9th 2009 @ 5:22 pm
i am a first time home buyer and closed on my home on June 20, 2009. can i file a claim now for the $8000 tax credit or do i have to wait to file 09 tax? thanks!
Comment by dara — Jul 15th 2009 @ 11:29 am
I just closed on my home on June 29, 2009. I was told it would take 4 to 6 weeks to get the refund. Should I prepare for a longer wait? After reading some of the comments, I am begining to worry that it may not come when I need it. thanks for any feed back..
Comment by Niki2424 — Jul 16th 2009 @ 12:31 pm
My fiance and I were purchasing a piece of property from a landowner for $48,000 we had all our paperwork and where making payments on the land. We went to one of the local mobile home lots to look into purchasing one to place on the land. They told us we could claim the $8000 tax credit on our taxes and use that as our down payment for the mobile home. I had already checked into getting all the permit’s, 911 address, etc. to have the mobile home placed on the land, and had done some preliminary paperwork to get to mobile home when we received the credit. Well right before we received the credit we found a way better deal on a actual house for $85,000 and decided to purchase that instead. So we just let the mobile home deal fall through and forefitted the land back to the landowner because we just love the house where in now. Well we filled a 1040x with a amended 5405 to reflect the changes that we made. It made our closing date and address for the 5405 change but we still have the paperwork from the land purchase which was way before the closing date that was put on our original 5405. Do you think the IRS is going to freak out on us and say we committed some type of tax fraud? I was told and lead to believe by the mobile home people that you could use the $8000 tax credit for the down payment of a new home. Did we break some rule by not following through with the deal with the mobile home people, by taking the house instead? Did I mention the house was a much better deal? I didn’t even find our until today that you couldn’t take the credit until after your closing date. I might not have been looking into that before because we had already closed on that land and had the paperwork for that already taken care of. Or am I just in some gray area here that the eventual audit will clear up? Any help would be appreciated.
Comment by Tommy — Jul 19th 2009 @ 1:32 am
dara,

You can definitely try to get the $8,000 now. You’d just need to submit a 1040x form, which is essentially an amendment to your ‘08 taxes. An accountant can help you with the process.
Comment by Brittle Fingers — Jul 20th 2009 @ 3:25 pm
My son and daughter-in-law want to buy a home that is owner carry. Do they qualify for the $8000 tax cut?
Comment by donna — Jul 20th 2009 @ 5:37 pm
My husband owns a home. I have never owned a home. We are in the process of getting a divorce. As long as I purchase a home after the divorce is final and before December 1st, am I eligible for the tax credit?
Comment by Jamie — Jul 22nd 2009 @ 11:09 am
do i qualify for the rebate if i now own the home, after refinancing with buyout of spouse. i am now the sole owner of the home?
Comment by elizabeth — Jul 26th 2009 @ 1:28 pm
I was wondering, many people on here stated that they waited 8-12 weeks to get their tax credit check from amending their 2008 returns. I am amending my returns and I was told by my CPA I can request a Direct Deposit of the refund to my bank account and the process is quicker. Anybody know if this is true and why didn’t everyone else file for direct deposit vs. check, does it have anything to do with amending?
Comment by Renee — Jul 27th 2009 @ 10:02 am
I just spoke to the IRS on 07/24/09. I amended my taxes and the IRS received it on May 27. My accountant said that I will be receiving a check and that the IRS could not direct deposit the money. Also, I was told by my accountant that it would take 6-8 weeks to receive the check. However, the IRS agent told me on Friday that now amended returns to receive the $8,000 first-time homebuyers credit check will take 12-16 weeks. I am in week 9…so I am hoping to receive by week 12!!
Comment by Lori — Jul 27th 2009 @ 4:00 pm
Hi

Does the tax credit have anything built in to cover people who have gone through a divorce? In our divorce settlement the ex kept the house and I would like to buy a home. Technically I have owned a home within the last 36 months but now I am single and starting over again.

Thank you
Comment by Becca — Jul 28th 2009 @ 3:00 pm
Becca: You owned a house in the last 3 years, so you WOULD NOT be a first time homebuyer.
Comment by Kelly — Jul 28th 2009 @ 4:02 pm
Jamie,
Yes you would qualify, if you purchase after the divorce, and before 31NOV09.
Comment by Kelly — Jul 28th 2009 @ 4:05 pm
Anita,
Once you purchase the home, it’s yours. You are eligible for the credit, even if you have elephants living in it with you. It wouldn’t matter if 20 people lived with you, or you lived by yourself-if the title is in your name, and the loan is in your name, and you have not owned a home in the last 3 years, you are eligible for the credit.
Comment by Kelly — Jul 28th 2009 @ 4:10 pm
Renee,
Direct deposit is always quicker than waiting for a check in the mail, but the quickness only aspplies after they have worked your return. The time you are saving is simply mail time.They still have a backlog of atleast 2 months just to get to the returns. They received my return 28MAy, along w all requested paperwork(proof of purchase,) it was assigned to someone on the 6th of June, and it still hasn’t been reviewed.
Comment by Kelly — Jul 28th 2009 @ 4:12 pm
What document has to be sent with my amended 2008 return and the 5405 to show proof of the home purchase in 2009?
Comment by Renee — Jul 30th 2009 @ 3:16 pm
Renee,
You will need to submit paperwork that you receive at closing. It is either HUD 1 or HUD 2. It is an itemized list of closing costs like insurance,taxes etc.
Comment by Kelly — Jul 30th 2009 @ 11:34 pm
Okay, enough name calling and nastiness. This is a place where people should be able to come ask questions without fear of being attacked. I have gone back and cleaned up this thread a bit to remove the negativity without removing the helpful answers. I do not want to close the comments on this post, but I will if the attacks don’t stop.

As my mother always told me, if you can’t say something nice, don’t say anything at all.

To those of you that were called names or otherwise made to feel unwelcome, I apologize. This sort of behavior is not typical of FCN readers.

Comment by Nickel — Aug 1st 2009 @ 12:59 pm
I divorced my husband one year ago in 2008. Prior to our marriage he bought and closed on a home. I was never on the title/mortgage. I have never owned a home. Am I elligible for the tax credit?
Comment by Kelly — Aug 3rd 2009 @ 5:39 pm
Kelly,

It sounds like you would qualify.
Comment by Brittle Fingers — Aug 4th 2009 @ 3:23 pm
UPDATE: So I efiled on 28May, chosen for a “random review”, and assigned to a worker 6Jun. After 8 weeks of holding my return, It was finally approved, and sent on it’s way to actually have my return released. Now, I was told to be patient for another 4-6 weeks. Total time will be 14 weeks, if I receive it in 4-6 weeks.
Comment by Kelly — Aug 4th 2009 @ 3:44 pm
Next time I will think twice about spending $150 to efile, since I’ve had to wait 14 weeks.
Comment by Kelly — Aug 4th 2009 @ 3:50 pm
Does anyone know if you need to file additional paperwork like the HUD 1 form with the ammended return for the 8000 tax credit?
Comment by Sue — Aug 4th 2009 @ 4:54 pm
Sue,
You would need to submit the IRS Form 5045, and your HUD 1 Form. The HUD 1 shows the IRS that you did indeed purchase a house.
Comment by vonnie — Aug 4th 2009 @ 7:05 pm
I am sitting here sick to my stomach reading the posts of people who qualified for the 2008 tax credit because they have to pay it back!!! BOOO HOOO! My husband and I closed on our house April 2nd 2008 and would be grateful to have had this credit and payed it back. Get over it people!!! Atleast you didn’t miss the credit by 6 days! And you sit here and whine as we struggle to pay our mortgage!!!!
Comment by Jessica — Aug 4th 2009 @ 7:43 pm
RE: above question on submitting the HUD 1 form along with amended return and form 5045,

Why? there is no written request for the HUD 1 written anywhere, where did you get that information?
Comment by Sue — Aug 5th 2009 @ 4:14 pm
Jessica,

You don’t have to pay back the $8,000 credit. It’s basically free money. Last year’s credit (the $7,500 one) had to be paid back, but not this year’s.
Comment by Brittle Fingers — Aug 6th 2009 @ 11:33 am
I am currently going through a divorce and looking for a house. My name is not on the mortgage that my husband has, but it is on the title. Would this disqualify me from claiming the tax credit?
Comment by OD — Aug 6th 2009 @ 12:57 pm
Sue,
If you file an amended return because you actually purchased a house, why would you split hairs about sending in proof of purchase? You don’t have to send in the Hud1 form if you would rather wait for the IRS to receive your amendment, and then request the HUD1. Why would you do that when so many people have already gone through it? I filed a regular return, then received a letter stating they needed further documentation showing proof of purchase.
Comment by vonnie — Aug 6th 2009 @ 1:12 pm
if we purchased a home through a neighborhood stabilization program, can we still qualify for the tax credit?
Comment by shannon — Aug 6th 2009 @ 8:02 pm
I think you people misunderstood me. My husband and I missed the 7,500 credit by 6 days. We would have been grateful to have gotten that money and gladly payed it back. However, we closed on our home April 2nd 2008 and missed it by 6 days. I was simply reading other comments where the people who got the 7,500 were complaining that they had to pay it back. As opposed to the people who closed in 2009 got the 8,000 and DO NOT have to pay it back. If the people who qualified in 2008 think that they have something to complain about then they should sit back and think about the buyers who purchased their home before April 9th of that year and how grateful some of us would have been to have gotten the 7500.
Comment by Jessica — Aug 6th 2009 @ 10:38 pm
I am so confused. My fiance just signed a contract for a house that will be closed on 10/31. According to the agents he can file the ammendment and other forms now, using the closing date on the contract so he can get it back in time to use it for the down payment at closing. On the other hand, We’ve also been told that some lenders that are approved can do what they call a bridge loan so you can use your 8000 credit for closing but not for down payments. Can someone please clarify this for us. Thank You
Comment by Phyllis — Aug 10th 2009 @ 11:33 pm
my husband and i just closed on our house on april 21, 2009. well as luck would have it (sarcasm)… we are going to get a divorce probably before the end of this year. who files for the tax credit and who gets it?! it’s his name on the loan and both of our names on the title. thanks for your help!
Comment by maria — Aug 15th 2009 @ 10:13 pm
Maria,
Sorry about your divorce. I have read about other couples each filing for half of the credit. If I was you, I would call the IRS or a tax preparer like H&R Block and ask them. I’m sure there is a simple answer for this.
Comment by TINA — Aug 16th 2009 @ 9:51 am
Does anyone know if the wait to receive the tax credit gotten any shorter, or is it still at least 12 weeks?
Comment by Sue — Aug 22nd 2009 @ 10:05 am
I am closing in just a few days and was told that I could get the $8,000 tax credit back in approximately 20 days, as long as it is filed by a CPA…. does this sound accurate?
Thank you,
Comment by Sara — Aug 22nd 2009 @ 1:24 pm
well.. i filed for my first time home buyers credit on april 1st…. and the recevied it on april 4th….. on June 26 I got a letter stating that i going to be audit for a ramdom review…. july 10 i got another letter saying.. i need to send in closing papers on my house i purchase….. july 20th i was assigned to a examiner….. yesterday i get a phone call from the examier saying that everything look great and will be getting my check within 2 weeks… so… everyone who is filing dont looke for your check to be here 8- 12 weeks…… the examier told me everyone is goin to be reviewed for the tax credit…….. good luck everyone
Comment by eric — Aug 22nd 2009 @ 3:10 pm
My son bought a home then rented it out. He plans to file for the $8,000 tax credit. I warned him that this house needs to be his primary residence for three years in order to get that money but he says the gov’t has no way of verifying where he lives. I didn’t agree with this dishonesty but he says all his friends are doing this, thinking they will get a cool $8,000 check in the mail.
Comment by deb — Aug 22nd 2009 @ 9:16 pm
My husband and I bought a house in Feb of 2009. So we are eligible for the 8,000 tax credit. We are aware that you must purchase a home before Dec. 1st, 2009 to receive the credit, but does anyone know if you must file your taxes before that time? Will it be fine that we file our taxes in Jan of 2010 to still receive the 8,000 dollars?
Comment by Bec — Aug 23rd 2009 @ 9:49 am
My husband and I just signed a contract on a home today, set to close October 2nd. I’ve been told that we can file an amendment to our 2008 return in anticipation of closing in order to get our $8000 back possibly before closing or at least in time for our first mortgage payment. Any comments?
Comment by Stacey — Aug 25th 2009 @ 12:10 pm
WHAT IF SCENARIO: I am purchasing a home right now under a contract for deed.

WHAT IF: I lose my job next year and am forced to sell my home or hand the house back over to the previous owner. How much of the 8K do I return? What if I sell the house for exactly what I paid? What if I sell it for 2K more than what I bought the house for?
Comment by Cher — Aug 26th 2009 @ 11:10 am
Umm, not to be rude, but those of you posting recently, would do, to read the entire blog. These questions have already been asked and answered.
Comment by Michele — Aug 28th 2009 @ 1:01 am
im married,but if we buy a house and in not on the tittle, just my husband name do we qualify for the 8,000
Comment by angie — Aug 29th 2009 @ 1:15 pm
I was reading on IRS.gov that the IRS Commissioner Doug Shulman said we can put money into our pockets right now rather than waiting to file them… if this is true, how do I go about in doing this?
Comment by cali — Sep 11th 2009 @ 6:07 pm
My husband and I filed the amended tax return May1 and still havent received antrhing in the mail. Does this chech even really exist? Everytimr I call the 800 number I get the run around and never accually talk to a person. Anyone received theres that filed around that time?
Comment by Kendra — Sep 14th 2009 @ 1:37 pm
My husband and I filed the amended tax return May1 and still havent received antrhing in the mail. Does this chech even really exist? Everytimr I call the 800 number I get the run around and never accually talk to a person. Anyone received theres that filed around that time? Its been longer than 12 to 16 weeks so anyone have answers because I dont.
Comment by Kendra — Sep 14th 2009 @ 1:38 pm
I bought a house in Aug 2008 and did not claim the $7500 on my 2008 tax return. My Question is can I claim it on my 2009 return? I would rather not file an amendment to my 2008 return if it can be avoided.
Comment by Anthony — Sep 16th 2009 @ 11:16 am
I am wondering if I qualify for the $8000 tax rebate. I purchased a mobile home in 2005 and still own it. I had to register it at the Department for Motor Vehicles. Is this still considered a house or is it considered a motor vehicle? We are waiting for the closing date on our home in Indiana. Any advice would be great. We didn’t know if we qualified in this case or not.
THANKS SO MUCH!
Comment by Lisa — Sep 16th 2009 @ 7:17 pm
I sold a mobile home in 2007 and I am set to close on a house in early October. My mortgage company told me that as long as there was a “title” and not a deed for the mobile home then you would qualify for the $8000 rebate. So if you registered it at the DMV then you should be fine because they handle the titles for mobile homes. I’m not an expert so you may still want to double-check for peace of mind.
Comment by Stacey — Sep 16th 2009 @ 8:14 pm
I have signed a purchase agreement on a new home that is being built. I am 66 years old with a dependent mother of 87 years old so the $8000. is very important to me. If they do not extend the date is there anyway for me to claim the tax credit with only an agreement?
Comment by Linda — Sep 20th 2009 @ 11:05 pm
Can anyone tell me. Can I get this credit if i file married filing separate. My Wife has a home that is sole and separate property and I have never owned a home until now. I live in it full time as well…
Comment by Mike — Sep 21st 2009 @ 1:58 pm
I am in the process of buying a home. My lawyer says that not only do I have to close by Nov 30th, I have to sign the contract by Oct. 1. This is the first I have heard regarding being in contract by any particular date. Do you know about this?

Thanks.
Comment by Ann — Sep 25th 2009 @ 8:35 pm
How do I obtain IRS Form 5405 and when can I completed it to apply for $8000 First-time Homebuyers Tax Credit?
Comment by Ernest R Richardson — Oct 4th 2009 @ 1:23 pm
You can get form 5405 from irs website (www.irs.gov). You can apply for it now if you have already bought your home. You just have to amend your 2008 return with a 1040x.
Comment by Stacey — Oct 4th 2009 @ 1:36 pm
I filed my amended return to Austin office in early June. I’m on week 17 and haven’t received anything. Told it’s still in process. At this point, I plan on calling weekly at this point in hopes of them telling me a check will be coming soon.
Comment by JM — Oct 5th 2009 @ 9:41 pm
I mailed my paperwork the day after I closed (Aug 11 closing date) I still have never eceived my $8000. How do I find out about my status?
Comment by Joyce74 — Oct 12th 2009 @ 12:15 pm
What address do we mail to? The IRS has several and they dont say on thier website?
Comment by Steve — Oct 12th 2009 @ 1:50 pm
hey everyone! i just wanted to tell you that because os this website i made a point to send my hud settlement statement with my amended forms. oh, and made sure i had already purchased and closed on a home. anyway , i received my check in the mail 8weeks exactly from when i sent them out. i learned from your mistakes.
Comment by shannon — Oct 15th 2009 @ 7:19 pm
my granddaughter, a college freshman, bought her first place, she has filled out all the paperwork but cannot figure out where to send the application to get the $8000.00 she has qualified for- can anyone please help – it’s in northern Illinois.
Comment by ANNETTE HOOVER — Oct 15th 2009 @ 11:09 pm
The IRS website does not tell where to send this form. I told them it would shure be nice if they posted this info some where on their site! I had to call the main IRS office, and after 20 minutes on hold, they told me that since I live in Arkansas I would send mine to the IRS, Kansas City, MO. 64999. If you live in IL. I don’t know where you would send it.
Comment by Steve — Oct 16th 2009 @ 9:57 am
I called IRS and they told me typically it’s 30 to 45 from the day they requested additional information that i should hear something. Well, I’m far beyond 45 days and they keep tell me 2 more weeks. Unbelievable! I’ve been waiting since the first week of June. This is crazy!
Comment by JM — Oct 16th 2009 @ 11:43 am
We purchased our home on October 15, 2008 and was informed by my previous landlord about the $8,000 First Time Home Buyer Tax Credit. This opportunity to make repairs on our home is God sent and will be beneficial to us once we are informed of when we will be given all the information in regard to recieving the Form 5405. Again, this is our first home and we would like to begin this process immediately.
Comment by Andrea Amundsen — Oct 26th 2009 @ 6:04 pm
#1- If you bought your home in 2008, you do not qualify for this tax credit. If you meant 2009, then you’re good.

#2- If you do qualify, you must pursue finding the form 5405 on the IRS website yourself; no one is going to seek you out and hand you or mail you this form. There is more to it than just filing the 5405 also which I will not get into. I suggest you call the IRS.
Comment by Stacey — Oct 26th 2009 @ 9:48 pm
For those wondering where to find the mailing address where you should send form 5405 and 1040x it shows in the instructions that come seperately for amending your tax return.

I went ahead and pulled out that part for anyone needing it, but I would still double check:

*

If you live in: Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia

Then Send to:
Department of the treasury
Internal revenue service center
Atlanta, GA 39901

*

If you live in: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Illinois, Iowa, Kansas, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, Wyoming

Then send to:
Department of the treasury
Internal revenue service center
Fresno, CA 93888-0422

*
If you live in: District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, Vermont

Then send to:
Department of the treasury
Internal revenue service center
Andover, MA 05501-0422

*

If you live in: Arkansas, Connecticut, Delaware, Indiana, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, West Virginia

Then send to:
Department of the treasury
Internal revenue service center
Kansas City, MO 64999

*

If you live in: Kentucky, Louisiana, Mississippi, Tennessee

Then send to:
Department of the treasury
Internal revenue service center
Austin, TX 73301

*
Comment by Zach M — Oct 29th 2009 @ 4:20 pm
From my research I came up with a few tips to help speed up the process if your just now going to try and file for it.

Include HUD-1 from closing -
Any forms that will make it easier for them to verify you really did purchase your home are going to come in handy, and will save you time from having to send them later.

Send Letter Certified Mail -
I don’t know why, but it just seemes weird that the majority of the people that said they got theirs quickly sent their forms certified mail.

Send the forms to the right processing center –
Take the time to send the form to the right IRS center for your state, so it doesn’t have to get sent anywhere else.

Also a few other questions I’ve seen that may or may not have been answered already are:

Question:
Do I have to sign the contract on my new home by a certain date in addition to closing?

Answer:
The IRS only specifies that you purhcase your home before 12/01/09. The only reason I could think that a realtor or accountant would say you need to sign by a certain date is because they know it will take some time to prepare for closing with inspections and everything, so they would need the time to be ready to close prior to the home purchase deadline.

Question:
Would it be faster to just file for the credit on my 2009 taxes?

Answer:
It’s hard to tell for sure, people are saying they’ve recieved their check after filing in anything from 4 – 24 weeks or more. In the end you’ll just have to make your bet one way for another and hope for the best.

Question:
Why is does it take so long for them to process my paperwork?

Answer:
There are thousands upon thousands of people filing for this credit just like this so understandably they are going to need time to get it all through. Plus with all the fraudulunt activity their discovering they are under extra scrutiny for ensuring each form is from a legitamit first time homebuyer.

The bottom line is that it’s probably going to take awhile for them to get you a check, but assuming everything is on the up and up and you get in before the deadline, you will get the money eventually. Sure they really dropped the ball on providing information on where to file, what to include, and wait times, but sadly thats just life. At least you don’t have to pay it back!
Comment by Zach M — Oct 29th 2009 @ 4:40 pm
I was recently married on Aug. 8, 2009. My wife has owned a condo for the past few years. I am purchasing a house this year. Since we were not married in 2008, may I submit an amended 2008 tax return to claim the credit?

Thank you.
Comment by Ben L — Nov 3rd 2009 @ 5:06 pm
Ben,
No you can not buy a house now and claim the credit, because your wife has owned a home in the last three years.
Comment by Vonnie — Nov 4th 2009 @ 9:55 am
I purchased my first home in 2007. And I just read that they extended the refund for owners who have owned thier first home for 3 years or less get $6500 tax credit. Is this true and how do I get this credit?
Comment by Sandy Mecham — Nov 5th 2009 @ 12:55 pm
Thanks for your site. I am supposed to close on Nov 25th. I am a single first time buyer making $85K a year. Under current law, I would receive a $4K credit because of the phaseout. The bill that the Senate approved raised the the range from $75 to $125, which would make me eligble for the full $8K assuming it passes the house and Obama signs it. Do I need to close after Nov 30 to get this additional $4K? A realtor told me it does not matter. What does anyone think?
Comment by Sam — Nov 5th 2009 @ 1:47 pm
I was divorced July 7,2009, my X and I had bought the house jointly and lived in it for 24 years. The house was sold and after my divorce was final, I purchased a home on my own. Maybe I grasping at straws here, but would that make “me” a first time home buyer?
Comment by Phil Gayle — Nov 5th 2009 @ 2:02 pm
How does a person who is disabled and doesn’t have a taxable income claim the Tax credit?
Comment by Manny — Nov 5th 2009 @ 3:19 pm
my income is $95,000 for year of 2009, I just bought a house and closed it 11/1/2009. Under the current law, I won’t get 8k credit because my income is more than 75K, but with the extension rule, would I get 8,000 credit because under the new rule, they increased the income limit to $150,000 for single. Do I have to close the house after 11/30 deadline for the new rule to be effective? thanks,
Comment by Tracy — Nov 5th 2009 @ 6:15 pm
I have the same question as Sandy. I just heard that they extended the refund for owners who have owned thier first home for 3 years or less get $6500 tax credit. Is this true and how do I get this credit?
Comment by Keisha — Nov 5th 2009 @ 6:40 pm
We owe back taxes and will close on our house on Nov. 17th. We borrowed (bond loan) the money for our closing costs with the agreement to use the 8k to repay it within 90 days. My questions are these:

a) Will they repay our tax debt from the 8k,
b) We paid our tax debt for 2009, will we get that back, and
c) Will they allow for us to repay the bond loan first (since we borrowed it from the government), and then pay our debt?
Comment by Stephanie — Nov 5th 2009 @ 9:18 pm
I sold my first home of 7 years in July 2009. I have been building a house since then. We moved into the partially finished basement. My question is that we are scheduled to have the house finished in December will I qualify for the $6500 or did I miss out because we had already moved to the property? We have not finilized a mortgage or filed homestead yet as I do not have to until December 31, 2009.
Comment by Chris — Nov 5th 2009 @ 10:59 pm
i was told today i did not qualify because i would be getting a construction loan. But don’t you close the construction loan and then buy the house.

I thought if i stayed the night in the house before April 30, 2010 or June 30, 2010 which ever one it is. Would that not make me quilify for the loan?
Comment by CRYSTAL — Nov 6th 2009 @ 1:05 am
My wife and I have 5 acres, with an appraised value of $75,0000, and that we still owe $43,000 on. We just bought a house, 10 miles away, that needs to be moved to our land. The move will cost around $9,000. We will need to newly construct a full basement and foundation. Will need to add an addition and rebuild a fireplace and chimney, add a radiant floor hydronic heat system and several new construction upgrades to reburbish it into a fully habitable well constructed home. All new construction and upgrades added to the basic shell (which needs to be moved, as indicated) will then form what will be our first time home. The move, new construction elements, overall upgrades, will run upwards of $60,000. On top of the $43,OOO still owed on the lot, which will get tied into a construction to final mortgage package. The final package will top $110,000. Will this whole mortgage package if closed by this December 2009 with a move in date by April 30, 2010, qualify in whole or in part for the $8000 First Time Home Buyer’s Tax Credit? The house shell would not be sufficiently habitable in it’s own right. In combination with the new construction details, add-ons, and upgrades – then it make for a habitable dwelling for my wife and I. I would seem to me to qualify in terms of the spirit of the incentive , if not in all the specific indications as seem to be laid out? I’m also assuming that FHA 203K projects that can include fixer-uppers, and even house moving would fit within the guidelines of eligibility for the full $8000 Credit? The question is, how flexible can one be in the interpretation of the rules and regulation policies of the $8000 tax credit program?
Comment by Rajb — Nov 9th 2009 @ 12:33 am
Im about over the IRS. Man they are useless. I sent the paperwork in on 8/27/09 and was told wait 6 weeks to confirm we recieved it. Called on 9/27/09 just for the hell of it- hadnt been noted in cpu and was told give it two more weeks. Did that, called back on 10/15 was told they recieved it on 8/31/09. So another 4 weeks have passed and I am getting anxious and call back today and get told “we have never recieved it and no one ever told you we did according to our records”.

Does anyone know of a way to get a straight answer out of these idiots? I am sooo not going to be happy waiting another 12-16 weeks for them to tell me again in February that I never sent it and they want me to send it again.

Is anyone having this trouble with these jokers?
Comment by Charles — Nov 10th 2009 @ 6:34 pm
well, I sent my amended return UPS and got a signature/delivery confirmation. I’ve called every Friday for the last 7 weeks only to hear ‘yea we rec’d it on “date”.

My suggestion is DO NOT FILE AMENDMENTS. If you wait and claim the $8,000 tax credit on your 2009 return and file your 2009 return via Electronic Turbo Tax you may get it much faster, it is the amendments that are taking so long.

Yea, I love how Obama did this tax credit to help the economy however if Obama can’t ensure that the IRS can process them in a timely manner what good is it going to do?
Comment by Renee — Nov 10th 2009 @ 7:02 pm
I’ve got a question about the first time homeowner tax credit and being on disablity. I’ve been on disablity going on 4 years and I’m divorced. I just bought a new house and closed on the sale back in early Sep. I went through USDA Rural Dev. to get the loan. I was wondering since the loan was a government loan and being on disablitiy would I qualify for this tax credit? If so how would I go about filing for it or what type of tax form do I need to fill out. Just curious, hearing about it on TV and seeing the information on the internet got me wondering. Thanks in advance.
Comment by Jamie — Nov 11th 2009 @ 11:34 pm
@ Jamie:
If you qualify as a first-time homebuyer and are within the income limitations you should qualify for the credit for your September closing. As long as you have not owned your principal residence in the last 3 years you should be ok. if your marriage ended less than 3 years ago and there was a home owned between you then you might not qualify. If the disability is your only income you shouldn’t be outside the income limits.
Comment by John — Nov 11th 2009 @ 11:56 pm
Thanks John, I was divorced by in 2007, but only married 1 year, and I don’t think my name was even on the house. Sounds like I wouldn’t qualify but wanting to ask to make sure. I would check to make sure my name was not on it before going any futher though. Thanks in advance.
Comment by Jamie — Nov 12th 2009 @ 1:00 am
We also received the USDA Rural Housing Development loan for our house and we qualify for the credit.
Comment by Stacey — Nov 12th 2009 @ 8:38 am
BTW – MAKE SURE WHEN YOU CALL THE IRS AT 1-800-826-1040 TO CHECK ON YOUR RETURN THAT WHEN YOU FINALLY REACH A PERSON – YOU HAVE A PEN & PAPER READY TO WRITE DOWN THEIR EMPLOYEE ID NUMBER THAT THEY TELL YOU WHEN THEY ANSWER YOUR CALL. I ALSO SUGGEST YOU WRITE DOWN THE DAY/TIME OF YOUR CALL – SO YOU HAVE SOMETHING TO REFER TO IF (OR SHOULD I SAY WHEN) PROBLEMS ARISE WITH THEM…THEY ARE SO FN EFFECIENT AREN’T THEY?
Comment by RENEE — Nov 12th 2009 @ 9:29 am
My ex-husband and I sold our home in March of 07 and I am purchasing a new home that should close Dec 1st. Thus, it will be less than 3 years since I was on a deed. However, since we sold the house we separated and then got divorced. Is there any clause in the tax credit for recently divorced single mom’s (even if its been less than 3 years since I owned).
Comment by Stacy — Nov 13th 2009 @ 2:32 pm
I did find out that my name was NOT on the last house I lived in and that was about 2 and a half years ago. I also found out that the house I owned and sold was in Jan. 2007. I’m missing the 3 years by 3 to 4 years because I closed my new one out in Sep. 09. It looks like I’m in the same boat as Stacy, so I’m wondering about the same thing as Stacy. Thanks in advance.
Comment by Jamie — Nov 13th 2009 @ 11:55 pm
I have a question about the First Home Owners Tax credit for 2008. When we filed our 2008 tax return, we did not claim the FHO tax credit, nor did we know about it at the time. Is there any way we can still claim that tax credit? We bought our house in late April 2008, and we really don’t want to miss out on this credit. Is there any way we can still claim it through an amended return… or maybe claim it on our 2009 tax return? Thanks in advance! Tina
Comment by Tina Kellum — Nov 14th 2009 @ 5:20 pm
I closed on my house in Oct 2009 so do I have to admend my 2008 tax return or can I just wait until I file my 2009 taxes to claim my $8000?
Comment by Jaclyn — Nov 15th 2009 @ 11:20 pm
I did our 2008 taxes using an h & r block tax program in March 09; we were talking to neighbor regarding buying his house on short sale. the software allowed me to take the FTH credit, which we did. We received it, we are still under short sale contract and I received a letter from IRS, asking for verification of purchase. I am now worried since we received approval that IRS will have notified caivrs and I will not have a loan anymore, can I file 1040X releasing the $8000 and return the money, or contact the irs on this one.
Comment by Penny — Nov 17th 2009 @ 1:04 pm
This article was mis-named. It did not explain how to claim the first-time homebuyer tax credit. Is this a reduction of tax owed? Or is it a deduction from income?
Comment by cd — Nov 17th 2009 @ 9:02 pm
cd: It’s a tax credit, which means that it’s a reduction of tax owed, not a deduction. It’s also refundable, which means that you get the money even if it reduces your tax liability below zero. Also, in the first paragraph, I specifically mentioned IRS Form 5405 — that’s how you claim it.

Comment by Nickel — Nov 17th 2009 @ 10:04 pm
My wife and I were married in Aug of 2008. She was recently divorced. She and her ex lived in there house that was in his name (mortgage and deed). I have not owned a house in 3+ years. I just closed on a house on Oct 30th in my name only (mortgage and deed). Can we still claim the $8000 tax credit??
Comment by nick — Nov 19th 2009 @ 4:10 am

Type of rates
- CD rates
- Money Market rates
- Savings rates
- Mortgage rates
Money to invest
< $10,000
Term
Up to 1 year
Money to invest
< $10,000
Desired Loan Amount
Loan Type
Refinance Purchase
State

Great deals...

Readers’ choice...

Most talked about...

Disclaimer...

The terms of third-party offers referenced on this website are subject to change without notice. While we strive to maintain timely and accurate information, offer details may be out of date. Visitors should thus verify the terms of any such offers prior to participating in them. Please see our terms of service for additional details.

fivecentnickel.com

Because Money Matters