Comments on: How to Claim the First-Time Homebuyer Tax Credit

By: nick

nick — Thu, 19 Nov 2009 09:10:38 +0000

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??

By: Nickel

Nickel — Wed, 18 Nov 2009 03:04:50 +0000

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.

By: cd

cd — Wed, 18 Nov 2009 02:02:19 +0000

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?

By: Penny

Penny — Tue, 17 Nov 2009 18:04:01 +0000

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.

By: Jaclyn

Jaclyn — Mon, 16 Nov 2009 04:20:04 +0000

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?

By: Tina Kellum

Tina Kellum — Sat, 14 Nov 2009 22:20:46 +0000

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

By: Jamie

Jamie — Sat, 14 Nov 2009 04:55:48 +0000

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.

By: Stacy

Stacy — Fri, 13 Nov 2009 19:32:31 +0000

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).

By: RENEE

RENEE — Thu, 12 Nov 2009 14:29:24 +0000

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?

By: Stacey

Stacey — Thu, 12 Nov 2009 13:38:13 +0000

We also received the USDA Rural Housing Development loan for our house and we qualify for the credit.

By: Jamie

Jamie — Thu, 12 Nov 2009 06:00:48 +0000

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.

By: John

John — Thu, 12 Nov 2009 04:56:04 +0000

@ 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.

By: Jamie

Jamie — Thu, 12 Nov 2009 04:34:49 +0000

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.

By: Renee

Renee — Wed, 11 Nov 2009 00:02:31 +0000

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?

By: Charles

Charles — Tue, 10 Nov 2009 23:34:55 +0000

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?

By: Rajb

Rajb — Mon, 09 Nov 2009 05:33:08 +0000

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?

By: CRYSTAL

CRYSTAL — Fri, 06 Nov 2009 06:05:50 +0000

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?

By: Chris

Chris — Fri, 06 Nov 2009 03:59:09 +0000

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.

By: Stephanie

Stephanie — Fri, 06 Nov 2009 02:18:19 +0000

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?

By: Keisha

Keisha — Thu, 05 Nov 2009 23:40:31 +0000

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?

By: Tracy

Tracy — Thu, 05 Nov 2009 23:15:18 +0000

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,

By: Manny

Manny — Thu, 05 Nov 2009 20:19:51 +0000

How does a person who is disabled and doesn’t have a taxable income claim the Tax credit?

By: Phil Gayle

Phil Gayle — Thu, 05 Nov 2009 19:02:06 +0000

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?

By: Sam

Sam — Thu, 05 Nov 2009 18:47:20 +0000

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?

By: Sandy Mecham

Sandy Mecham — Thu, 05 Nov 2009 17:55:31 +0000

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?

By: Vonnie

Vonnie — Wed, 04 Nov 2009 14:55:36 +0000

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.

By: Ben L

Ben L — Tue, 03 Nov 2009 22:06:43 +0000

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.

By: Zach M

Zach M — Thu, 29 Oct 2009 20:40:45 +0000

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!

By: Zach M

Zach M — Thu, 29 Oct 2009 20:20:44 +0000

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

By: Stacey

Stacey — Tue, 27 Oct 2009 01:48:54 +0000

#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.

By: Andrea Amundsen

Andrea Amundsen — Mon, 26 Oct 2009 22:04:17 +0000

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.

By: JM

JM — Fri, 16 Oct 2009 15:43:31 +0000

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!

By: Steve

Steve — Fri, 16 Oct 2009 13:57:45 +0000

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.

By: ANNETTE HOOVER

ANNETTE HOOVER — Fri, 16 Oct 2009 03:09:53 +0000

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.

By: shannon

shannon — Thu, 15 Oct 2009 23:19:26 +0000

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.

By: Steve

Steve — Mon, 12 Oct 2009 17:50:46 +0000

What address do we mail to? The IRS has several and they dont say on thier website?

By: Joyce74

Joyce74 — Mon, 12 Oct 2009 16:15:35 +0000

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?

By: JM

JM — Tue, 06 Oct 2009 01:41:30 +0000

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.

By: Stacey

Stacey — Sun, 04 Oct 2009 17:36:35 +0000

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.

By: Ernest R Richardson

Ernest R Richardson — Sun, 04 Oct 2009 17:23:13 +0000

How do I obtain IRS Form 5405 and when can I completed it to apply for $8000 First-time Homebuyers Tax Credit?

By: Ann

Ann — Sat, 26 Sep 2009 00:35:52 +0000

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.

By: Mike

Mike — Mon, 21 Sep 2009 17:58:00 +0000

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…

By: Linda

Linda — Mon, 21 Sep 2009 03:05:19 +0000

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?

By: Stacey

Stacey — Thu, 17 Sep 2009 00:14:08 +0000

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.

By: Lisa

Lisa — Wed, 16 Sep 2009 23:17:48 +0000

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!

By: Anthony

Anthony — Wed, 16 Sep 2009 15:16:39 +0000

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.

By: Kendra

Kendra — Mon, 14 Sep 2009 17:38:48 +0000

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.

By: Kendra

Kendra — Mon, 14 Sep 2009 17:37:34 +0000

By: cali

cali — Fri, 11 Sep 2009 22:07:29 +0000

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?

By: angie

angie — Sat, 29 Aug 2009 17:15:28 +0000

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