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How to Claim the $8,000 Home Buyer Tax Credit of 2009

This article was written by in Taxes. 349 comments.

Claim the tax credit with Intuit TurboTax or H&R Block At Home.

Are you claiming the home buyer tax credit with your 2009 income tax return? Read these new instructions. The credit has been extended and expanded to qualify for more people, including long-time homeowners. I’ve included some of the basic information below.

Because the IRS requires additional documentation, taxpayers who wish to claim the home buyer tax credit must filing federal tax returns on paper through the mail.

1. Download and complete the revised Form 5405. This form is available here. The form will guide you through the process, ensure you qualify for a credit, and determine the amount of your credit. Here are instructions for completing Form 5405.

2. Collect your required documentation. You will need the Form HUD-1 Settlement Statement or other settlement statement outlining the names and signatures of all parties to the sale, the property address, the price, and the date of purchase. If you do not have a settlement statement, as you might not if you purchase a newly-constructed home, attach your certificate of occupancy.

If you are under contract but have not taken occupancy of the house by the time you file your taxes — and you still qualify under the date restrictions above — included pages from your signed contract including the signatures and names of all parties, the property price, the address, and the contract date.

If you qualify as a long-time homeowner rather than a first-time home buyer, include Form 1098 (Mortgage Interest Statement), property tax records, or homeowners’ insurance records. The forms must cover a full consecutive five year period within the eight years ending on the date of the purchase.

3. Complete your Form 1040. Include your bottom line on Form 5405 on the appropriate line on your income tax return. On the 2009 Form 1040 return, this is line 67. You can’t claim this credit with Form 1040EZ.

4. Double-check your work. Check for the most common mistakes, such as not signing the return or using the wrong Social Security number. Review each form line-by-line and check your calculations. Any mistake will cause a delay.

5. Mail your forms and wait. When people began claiming the first-time home buyer tax credit last year along with an amended 2008 tax return, people were receiving the credit within six weeks. As more people began applying, receiving the credit took longer, particularly if documentation was missing.

Below is the original post explaining how to claim the $8,000 first-time home buyer tax credit when claiming 2008 income. This no longer applies unless you are revising your 2008 income tax return. If you are submitting your 2009 income tax return read this article.

Original article for claiming $8,000 tax credit for first-time home buyer on 2008 income tax returns

Thanks to the American Recovery and Reinvestment Act of 2009, formerly known as the “stimulus bill,” first-time home buyers are eligible for a refundable tax credit of up to $8,000 this year. Here is what you need to know in order to claim the credit.

Who qualifies as a first-time homebuyer? A “first-time homebuyer” is anyone who has not owned a house in the past three years. Furthermore, if you don’t live in the house purchased this year for the three years following the purchase, you will have to pay the credit back to the government. This credit is intended for people who live in their own houses, not house flippers or speculators.

What is a refundable tax credit? When tax professionals and the IRS talk about “refundable tax credits,” they do not mean that you have to pay the credit back to the government. A refundable tax credit means that if you owe less tax than the amount of the tax credit, you will receive a refund — even if you have no other tax liability for 2008. That’s not a bad deal. In other words, if you owe $200 to the government before claiming the credit, and you qualify for $8,000 for the first-time home buyer credit, rather than paying the government, you will receive a check for $7,800. Even if you had no income in 2008, owed no tax, and purchased a qualifying house in 2009, the government will send you a check for $8,000.

TurboTax is Easy, Free Edition, Fast Refund

What if I bought the house last year? If you purchased a house in 2008 and were a first-time buyer, you qualify for the older refundable tax credit with a maximum of $7,500. This does require that you pay the $7,500 tax credit back over the course of fifteen years, starting two years after the date of the purchase. This is still a good deal. As time goes on, thanks to inflation, you are paying back this “loan” with money that has smaller purchasing power.

To qualify for the new credit with the maximum of $8,000, you must be a first-time home buyer and the sale must take place between January 1, 2009 and November 30, 2009.

Do I qualify for the full $8,000? The actual credit you will receive is 10% of the purchase price of the home or $8,000, whichever amount is lower. If your modified adjusted gross income (MAGI) as a single taxpayer is over $75,000 or if your income as a married couple is over $150,000, your credit will be phased out. The credit will be eliminated if your income is above $95,000 (single) or $170,000 (married).

How do I claim the home buyer tax credit? You can claim this credit when filing either your 2008 or your 2009 income tax return. For example, if you believe that your income level in 2009 will be too high to qualify for the credit but you already know that your 2008 income is low enough to qualify for the full amount of the credit, you can claim the credit on your 2008 income tax return.

Complete IRS Form 5405 to determine the credit amount. Here is the official revised copy of Form 5405 [pdf] that takes the new $8,000 home buyer tax credit into account. Take the bottom line amount on Form 5405 and enter the number on line 69 of your Form 1040. Not all online tax preparation software has been updated to include instructions for this new credit. I checked H&R Block Tax Cut, TaxACT, and TurboTax Online, and as of last night all three include only the rules for last year’s $7,500 credit. You may wish to wait for the software to catch up with the IRS before completing and filing your 2008 income tax return. Or, if you don’t want to wait, you can do your taxes by hand. See new updates at the bottom of this article for TaxACT and TurboTax.

If you have filed your taxes already, you will be required to file an amended income tax return if you want to receive the credit this year with your 2008 refund.

Please keep in mind that I am not a tax professional and none of what is written here or anywhere else on Consumerism Commentary should be considered tax advice. You are solely responsible for your own tax return, and any questions should always be directed to your tax accountant or the IRS.

TurboTax is Easy, Free Edition, Fast Refund

2:00 pm update: TaxACT has contacted me to let me know that as of today, February 25, their software has been updated to correctly figure the $8,000 first-time home buyer credit. I’ve confirmed that the new calculation is now active.

February 27 update: A representative from Intuit has confirmed that TurboTax has now been updated to include the $8,000 home buyer tax credit and the change should be in effect today. I don’t see it as of 4:00 pm, but I will check again later tonight. Originally TurboTax planned on putting this update into effect as late as March 11.

Here is what a TurboTax representative said: “As with any tax changes, especially those that come very late in the season, we are reliant on the IRS to provide guidance so we can update the product accurately and completely. Once the IRS gave us the correct guidance and requirements, we immediately started working to update.”

Updated June 24, 2016 and originally published February 25, 2009. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 346 comments… read them below or add one }

avatar 1 Anonymous

thanks for the updates, good information to know!

I do feel bad for those who bought last year though, and who won’t just get the credit – and instead will have to pay it back. Oh well, i guess life isn’t fair!

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avatar 2 Anonymous

I purchased last year, and I feel sorry for myself! I missed out on 8K.

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avatar 3 Luke Landes

Peter: That’s true. People who purchased in 2008 thought they were getting a good deal. You can never know if a better deal is coming down the pike. It’s best to buy a house when you need to buy a house. A small tax credit (or loan), while helpful, probably shouldn’t be the driving force behind the decision.

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avatar 4 Anonymous

Does it completely expire in Nov. or is there any talk of extending it? I ask b/c I’m planning on buying a new home in June 2010 (saving for the right down payment now). 8,000 could go a long way towards helping.

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avatar 5 Luke Landes

I don’t think there’s any talk right now of extending it because it was just signed into law, but laws can and will be changed.

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avatar 6 Anonymous

Thanks for the advice. Answered a few questions I was looking for.

Closing on a home April 1st, so should be just in time.

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avatar 7 Anonymous

Thank for sharing this info….. I own the house with other couple (married). We are joint tenancy, so do you have any idea how to allocate this credit.

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avatar 8 Luke Landes

For joint tenancy, the credit should be claimed in proportion to each owner’s share in the residence. Best way to do that, as far as I can tell, is take the purchase price and split it according to your ownership percentage, but check with your tax professional.

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avatar 9 Anonymous

My husband and I closed on our house 3/28/08. Our accountant says that we missed the first deal by 12 days. Grrrr!!! We are getting ready to refinance our house because the interest rates have dropped so much. Will this then qualify us or are we just S.O.L.?

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avatar 10 Luke Landes

Lisa: Unfortunately, you can’t qualify for the credit with a refinance.

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avatar 11 Anonymous

Do you know if our mortgage banker or realator would have known about the $7500 tax credit where they could have informed us to wait 12 stinkin’ days?

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avatar 12 Luke Landes

It’s likely they wouldn’t have known about it in March 2008. The $7,500 credit was signed into law in July 2008.

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avatar 13 Anonymous

We sold our house in Sept of 2006 but due to the buyers financing we had to “re” close Oct. 12, 2006 and will close on our newly constructed home Oct. 1, 2009. Will be be able to get the credit? In Sept we had to be out of the house, give the keys to the new buyer and then was called the next week that we needed to “re” close….I cannot adjust my Oct. 1st closing the bank says our construction loan is up and we must close on that day….Help!

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avatar 14 Anonymous

Well, that takes a little bit of the sting out of the whole situation! You’ve been quite helpful. Thanks a bunch!

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avatar 15 Anonymous

Two questions: We’re building our own place on land we’ve owed for a couple of years. If we can get a certificate of occupancy by the deadline, do we qualify? We’re building it ourselves, not using a contractor.

And since it probably 1) will be valued at slightly less than $80,000, and 2) won’t be appraised at all right away, how would be know how much of a credit to claim?

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avatar 16 Anonymous

My husband and I are building a home too. We started building in Oct. 2007 and moved in in Oct. 2008, although the house is not done yet. What do you use as the date to qualify for the tax credit? Our house has not yet been appraised, because we are waiting to it finished (we are building ourselves).

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avatar 17 Anonymous

Just one question, what is the cut off date if we buy a home this year to amend our taxes that we have already filed for 08. For instance if we buy a home on April 25 can we still amend or does it have to be before the 15th?

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avatar 18 Luke Landes

Andrew: November 30 is currently the last day you can buy a house this year to qualify for the $8,000 (maximum) credit. You can file an amended return.

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avatar 19 Anonymous

I was told that you have to file the ammendment by April 15th to get the credit this year, like a normal tax return. If filed after that, they may not accept it or give the money back till next year.

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avatar 20 Luke Landes

Jessica: There is no indication in the law that you have to file an amended return by April 15 in order to qualify for the credit. File by April 15 to avoid a penalty, or file for an extension. You can file an amended return at any time, and the rules don’t change. Check with your tax professional.

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avatar 21 Anonymous

I qualify for the $8,000 credit. I used TaxAct Free Edition e-file on 3/3/09 and just received an email from TaxAct stating my return had been “rejected by the IRS” because the IRS is not yet allowing the first-time homebuyer credit of $8000 to be electronically filed.
Needless to say, I am a bit pissed that I spent time filing with TaxAct and now they tell me this after the fact. I am astounded at how uninformed all of these tax preparation/tax filing services are.

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avatar 22 Anonymous

I had the same exact problem! Is TaxAct going to charge us again to submit our taxes? They should have told us before we submitted the revised 5405 that it’s not be accepted yet. Also, how will we know when we can e-file this?

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avatar 23 Anonymous

I’ve contacted Tax Act. You don’t get charged until your E-file has been “accepted” by the IRS. If it was rejected due to the $8000 First Time Home Buyer Credit, you will not be charged. I am going through the exact problem. I just wish we could find out WHEN the IRS is going to get their act together!!

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avatar 24 Anonymous

Just had the same problem with TaxAct e-file yesterday (March 9th); got the rejection notice this morning (March 10th). Notice says that the IRS has given an estimated timeframe of resolution as “the next two weeks”, which is uncomfortably vague. I called the IRS to gauge whether filing a paper return would be a better option, but the rep was noncommittal, just saying that a paper return with direct deposit is six weeks maximum.

I would hate to wait two weeks for to e-file, only to be told it will be another two weeks for the problem to be fixed, when I could have gotten the ball rolling on a paper return. This sucks…

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avatar 25 Anonymous

You will be able to e-file on March 31st! See the below
info that I got from TaxAct.com

UPDATE 3/11/09 The IRS has issued a statement that returns with Form 5405 claiming the First-Time Homebuyer Credit of $8,000 for homes bought in 2009, will be accepted electronically at the end of March. Please resubmit your return on Monday, March 30, 2009 after 6:00pm CST.

avatar 26 Anonymous

We closed on a property on April 18 2008 and were able to get the tax credit of 7500.00, or I should say interest free loan. I must say I am thankful for this opportunity. However, I am looking into purchasing a Business/Apartment building in tax year 2009, and was curious if I could also cash in on the 2009 house tax credit? Thank you

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avatar 27 Anonymous

Hi Jems:

Unfortunately, the IRS only allows you one bite at the apple. If you have claimed the 7500 credit, you cannot receive the 8000 credit. Sorry.

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avatar 28 Anonymous

If you purchased your house in 2009 and have already claimed the $7500 credit you can file an amended return and get the $8000 credit.

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avatar 29 Anonymous

I purchased my new home in 2009. file my taxes this year 2010. the IRS rejected my $8000 credit

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avatar 30 Anonymous

That response is a little hard to interpret.

One reason you can’t get the 8000 credit is because you’re buying a business/apartment building. The credit is for a HOUSE.

Even if it were a house, you already bought one in April of 2008, so it wouldn’t be a first-time home.

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avatar 31 Anonymous

Sorry. I also forgot to mention, for those who actually do qualify for the 8000, but already accepted the 7500 credit… you CAN file an amended return for the 8000. So don’t think just because you already accepted one, you can’t get the other INSTEAD.

Remember, you have to buy a main HOUSE without ever owning one in the last 3 years and it has to be purchased from December 1, 2008 to December 1, 2009.

Thanks!

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avatar 32 Anonymous

MY HUSBAND & I JUST BOUGHT A HOME ON 1/15/09, WE ALREADY DID OUR TAXES WHEN WE AMMEND THEM AND FILL OUT THE FORM 5405 WHAT PAPERWORK REGARDING THE HOME DO WE HAVE TO SUBMIT WITH THE FORM FOR PROOF OF BUYING, IT DOESNT SAY ANYTHING IN THEIR INSTRUCTIONS!

avatar 33 Anonymous

I signed on a refinance on my mother’s home about two years ago… now my wife and I want to purchase a house this year does that mean I don’t qualify for the first home buyer tax credit?

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avatar 34 Anonymous

I am still confused…a couple of tax preparers have told me that I can’t take the credit on my 2008 return, even though I plan to buy a home this year before Nov. 30. But IRS website says that the new version of the credit is designed to put money in homebuyers’ hands right now. Help me understand please. I know it may sound like a dumb question but I was always told in school that there are no dumb questions : ). Thanks in advance.

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avatar 35 Luke Landes

The tax preparers are correct. You can’t take the credit if you only *plan* to a buy a house. The house has to be purchased by the date you file. You can file for an extension on your tax return, which would give you time to buy your house before the November 30 qualification deadline.

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avatar 36 Anonymous

I HEARD THAT ANYONE WHO HAS NOT OWNED A HOME FOR THREE
YEARS WILL ALSO QUALIFY FOR THE INCENTIVE IF A HOME IS PURCHASED.
ALSO, A TAX CREDIT FOR THE PURCHASE OF A NEW CAR. DOES IT HAVE TO BE AMERICAN MADE?

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avatar 37 Anonymous

My wife and I bought our house in early 2009, and we’re filing for the $8,000 tax credit on our 2008 taxes. Our return (Through TaxAct) was rejected like the other posters above, because the IRS isn’t accepting eFiles with $8,000 credits in them yet.

The note from TaxAct says that it will be roughly two weeks until the IRS updates it’s system to accept eFile-d returns with the $8,000 credit. We got the rejection on March 1, so we’re hoping things will be cleared up by next weekend (March 14-15).

Is there a page on the IRS website that will tell us when we will be able to resubmit our 2008 taxes? Or, should we continue checking the TaxAct website, looking for a re-submit button?

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avatar 38 Anonymous

Just file the $7500 current credit and then file an amended return later. That way you are only waiting for the additional $500.00.

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avatar 39 Anonymous

You will be able to re-submit on 3/30/09 after 6:00 pm CST. Check TaxAct’s website and you will see it for yourself.

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avatar 40 Anonymous

Okay we are in the process of buying a house. We have already filed our taxes and got our return are we eligible for the $8K tax stimulas credit?

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avatar 41 Luke Landes

If you qualify as a first time home buyer, if your income level doesn’t disqualify you, and if you complete the purchase and move in by November 30, you will need to file an amended 2008 tax return.

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avatar 42 Anonymous

Hi,

I have never purchased a house before, however my boyfriend has owned previously and sold his house in 2007. So, it has not been 3 years. He makes over the $75,000 threshold, I make less than $75,000. If we purchase the house together, will I be able to claim the house alone and get the credit?

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avatar 43 Anonymous

If you normally file your taxes separately and it is your name only on the deed, then I would guess yes. If both names are on the deed or you file together, then probably not.

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avatar 44 Anonymous

One simple question. Does the tax credit apply only if I buy an existing house or will I be eligible if i build a new house?

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avatar 45 Anonymous

From what I have read you would be eligible if you built the house and moved in before Nov. 30, 2009

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avatar 46 Anonymous

A few years ago my mother add my name to the deed of her house and property. Did doing so make me part owner and exempt me from the tax credit?

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avatar 47 Anonymous

Did you ever get an answer to this question? If so, what state are did you file from?

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avatar 48 Anonymous

I am buying a home and closing on May 15th. My mortgage person and real estate agent believe that there is a cut off date of March 31st for being able to amend your return to get the tax credit.

I checked with Turbo Tax and there is no mention of a cutoff date that the home must be purchased by the 31st, so I sent away the amended return. I would have thought that Turbo Tax would have stopped me when I put in the date of when the home was purchased (May 15, 2009). I am really confused. Do I qualify or am I out of luck?

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avatar 49 Luke Landes

March 31 is not the correct cut-off date. Homes purchased this year before or on November 30 qualify for the $8,000 tax credit *but* you can’t put a future date on the form. If you file your taxes now, you will have to file an amended return *after* you buy the house. Or you can file for an extension now. From what I understand the IRS is not yet accepting tax returns for people claiming the $8,000 through online services like TurboTax yet anyway.

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avatar 50 Anonymous

No, the cuttoff is April 15 per my lender to ammend your taxes for This year. The cuttoff for the credit in general is Nov 30th or something like that, but after April 15th you have to claim it on your 2009 taxes, not 2008. This is what I was told and it makes sense since taxes are due by April 15th.

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avatar 51 Anonymous

As far as filing an extension, that may work to be able to claim it this year, but I would ask a tax professional just to make sure.

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avatar 52 Luke Landes

Amended returns only need to be filed before April 15 if they would result in owing more taxes to the government, and in that case, the only thing that will happen is you will be charged a penalty as a percentage of the additional amount you owe. You can still avoid that penalty by paying the additional tax before April 15, whether you file the amended return by then or not. You can file amended tax returns for several years.

If you’re expecting that your amended return would result in a larger refund, as in your case, it’s actually better to wait until after you’ve received your first refund. That gives the IRS a lesser chance of sending the incorrect amount. Yes, the IRS can make mistakes, too!

As always, check with a tax professional, particularly one who is familiar with the $8,000 tax credit for first-time home buyers. There seems to still be a lot of misinformation out there.

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avatar 53 Anonymous

Ahhh, I see. well like I said that was just what was told to me, when she said I could ammend she said I had to do it by April 15th but yeah, I just ammended my 2007 return for money I forgot to claim, but see this year we will be over the threshold. We were only like 250.00 under it this year and that’s why I want to claim it in 2008. Anyway, I stand corrected.

avatar 54 Anonymous

I file 08 taxes in October 09 using Combat Zone Tax Extension (CTZE). I guarantee you I can file after April 15 my 2008 taxes and also get the credit no matter what your tax preparer says

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avatar 55 Anonymous

You CAN amend your return at anytime to claim the credit. I have clients that amended in May and have received their money, while I also have clients who amended April 15 and have not received anything yet.

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avatar 56 Anonymous

I need help – my husband and I closed on our first home on March 5th, 2009. I had already filed my return so I was told to do the ammeded return and to use the revised 5405 form. Ok that’s easy, no problem. But then the actual 1040X ammendment form is not so simple. Everytime I input everything they ask it never amounts to me getting back the 8000, and we are below the threshold, so I don’t understand…do I need to fill out this form? It says subtract this and put difference here but not less than 0…if I put in the actual amount it would be less than 0 and I think then it would add up but as of right now it is not. It is confusing me a bit. I file my own taxes every year and am a Realtor, but have never done an ammendment…I just can’t bear to give someone 80$ to fill out one sheet of paper, I am going to need every cent of that money to do updates to this house… has anyone else done the ammendment themselves yet for this particular situation/credit?

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avatar 57 Anonymous

nevermind I figured it out. So I am going to attach a copy of my HUD as proof, since I’m doing this myself and don’t have a tax person doing it. Hopefully that, the ammended 1040X and the 5405 are all I need to send and I’ll be good to go. I just had to send them a check for 277 for an ammended 2007 return, so this is much more exciting!

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avatar 58 Anonymous

Hi Jessica,

I’m on the same boat as you are. I have both the 1040X and 5405 forms, but have no clue on how to include the $8000. I made an appointment with a tax person tomorrow, but I rather not if it’s simple.

Please help.

Thanks,

Ethel

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avatar 59 Anonymous

Ok, here’s what mine looked like… the 5405 was easy for me, my house was above 80,000 and we were below 75K for income, so basically you just enter your adj gross income from your tax return and the 8000 credit. The 1040X is like this:
First of all, make sure yours says (rev. February 2009) at the top under form 1040X. This is the one that includes the form 5405 in the payments section on line 15. That was one of the biggest mistakes I had made.
Enter the info at the top just like it should be, self expanatory. For Income and Deductions, if the only thing you are ammending is this credit, then you can leave this section 1-5 blank. I opted to fill it out, just enter #’s from your 1040. actually that’s all you do. If you have your 1040, then here’s a key to go by:
(1040X = line x from 1040)
6. = line 44.
7. = line 55.
8. = difference or line 56.
9. = any other taxes on lines 57.-60. I had 0
10. = line 61.
11. = line 62.
12. = line 63.
13. = line 64a.
14. = line 66. (another mistake I had made was I put the child tax credit here instead of on line 7.)
**15. = line 68. BUT this is where you put 0 on the first line (if you didn’t receive any of the listed credits) then put the 8000 on line b and 8000 again on line c if you are claiming the whole 8000. This should be the only line that has a change up to this point if this is the only thing you need to ammend. Every number before 15. should have a 0 in the middle column and columns a and c are the same numbers.
16. = line 67.
17. = any $ you had to pay in when you filed. If you got a tax return this should be 0.
18. = Add lines 11-17. on the ammendment form.
19. = Amount of your refund from this years return if you received one.
20. = subtract 19 from 18. (18.-19.)
21. = probably 0
22. = If line 10 column c is less than line 20., enter the difference. This should equal 8000 if you filled out everything correctly.
23. = 8000 if you want it all refunded to you…

Ok I know it looks confusing, but if you take it one line at a time and have your 1040 in front of you and the attached instructions for the ammendment form onhand, its not hard. The most important thing is to make sure you don’t change anything from the tax return other than that credit on line 15.

Also, I’m sending a copy of my HUD with it and the 5405 as proof of the sale… I hope this helps! Ask me if you have a specific question and I’ll see if I can explain it better.

6. = line 44.

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avatar 60 Anonymous

Jessica,
I read your directions on how to complete the 1040X and it was very helpful except I am having some trouble completing my form. I originally filed a 1040A so I couldn’t follow your instructions completely. My questions:

1) If the 8000 credit is the only thing I am changing do I need to fill out anything before line 15?

2) Line 18 should be $8000, correct? Line 19 asks for my overpayment which I believe is the amout of my refund. I received a refund so I enter that amount so when I enter the amount of my refund and subtract fom line 18 then I get an amount less than 8000 which results in me getting less than 8000 as a credit. Can you tell what I am doing incorrectly?

Thanks for any help you can offer!

avatar 61 Anonymous

Jessica,
I have a question, do you apply for the credit before the purchase of the house or afterward? Do I have to pay for closing cost and downpayment upfront and rec’d the tax credit afterward?

avatar 62 Anonymous

Thanks for this GREAT 1040x & 5405 guide. It made the filing process easy. You are a lifesaver!

avatar 63 Anonymous

Thanks for taking the time for this step by step guide.

avatar 64 Anonymous

I had no idea you could get the credit on 2008 taxes. My wife and I close on our house on Friday. We thought we’d have to go through the rest of 2009 with our savings depleted from the home purchase. This info will help us out tremendously. Looking forward to filing the amended tax return tonight. Thanks Flexo!

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avatar 65 Anonymous

I didn’t know either until I was sitting at the closing table. It will take around 8 weeks to get it probably, but I know, I’m in the same situation, just spent 6 grand, I’ll probably just put the 8 grand into savings for now as emergency fund and let it earn interest…my husband’s job is secure, but in this economy things can change unexpectedly and quickly, so just in case its better to be safe than sorry. I have several friends who have lost their homes this year due to job losses in our area (East TN) and here I am buying! But you know, we worked very hard for several years to get to this place and I wasn’t about to pass up the opportunity to buy a house I’ve walked by and loved for years and years.

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avatar 66 Anonymous

Good Advice from a Realtor (who specializes in valuating foreclosed homes for Bank REO’s.)

Put money in savings and don’t invest too much in your homes until market stabilizes some, b/c most places do not see a return on them in this market. There are some markets that are doing good, but they are few and far between. Here, typically you see about 4-5 times the number of active comps in any given area compared to the number of sold comps in the last 6 months or even up to a year in some cases. Values have dropped significantly. Remember that irresponsible buyers combined with unexpected layoffs/business closings and Crappy ARM loans caused this!!! (make sure you are getting a fixed rate loan and make sure your rate is locked in!! Research rates and typical closing costs and be an informed buyer! Listen to your Realtor and of course use one! :) but confirm things and get at least 2 lender quotes.)
Oh and prepare for the unexpected. Get a home warranty and definitely get a home inspection. Ok I think those are the most important rules.
Anyway, Good luck and congrats to all the new or soon to be homeowners!

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avatar 67 Luke Landes

Good advice there, thanks for sharing!

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avatar 68 Anonymous

Jessica, Not everything said here was bad but if I were people I would talk to a bank lender, especially if it was a smaller community bank, instead of talking just to a Realtor. That is because a bank wants to develop a relationship beyond the sale of the home. For example, it never hurts to upgrade your home. With some community banks you can even borrow the money upfront and if you do the labor yourself, your “sweat equity will be counted towards your downpayment. Number two all ARMS are not “Crappy” and many times are the right way to go. I have seen many people pay higher costs and PMI because they thought they had to have a fixed rate loan. A banker who cares, and there are those out here like myself who do, will explain the difference and suggest the proper strategy based on your personal situation. It is never a “one size fits all” solution. I would never say do not listen to a Realtor or not to go to one, but when it comes to the finance part, consult a banker who would prefer to have a long term relationship with you, not just a one time transaction. I am not saying all Realtors are like this but I have see many who develop relationships with entities who write loans but provide no other financial services to the customer and it ended very bad for the customer. Community bankers have a vested interest for you to succeed.

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avatar 69 Anonymous

…which is why I used a community banker for my home that I just purchased and why I said to speak to at least 2 lenders, because they also have different programs and specialties. Hey, I am not a Realtor who has a professional relationship with ANY lender in terms of referring or whatever. I do BPO’s and that’s it, I do not list or sell property. I am not trying to give advice over a lender’s or even say that I know it all, but personally I do 25-30 market valuations monthly for banks, and 90% of the foreclosures are ARM loans, so the way I see it, for most people it is not the best deal, not when you can get a low fixed interest rate that is at least a for sure thing, no hidden charges or penalties or a sudden jump in interest b/c you have 1 late payment. We are talking about people who went from 6% interest rates and $1200/month payments to 12% rates and 2300/month payments after a year or two. The point is to GO to 2 or more local lenders be it your bank or a mortgage broker, whatever, and personally sit down and talk to them and find out not only who has the best plan for your individual needs, but who you feel like you can trust, because I have been burned in the past and it is possible for them to say one thing and it be another thing completely. Also, it is always smarter to save your money than spend it unless its a necessity, and considering what my job function is, I do think that I know what I’m talking about as far as investing in your house, and lastly, the entire point of my comment is, EDUCATE yourself. Do not blindly trust Anyone! In this economy, especially, ugly sides of people can be revealed. Make sure you do your homework and above all, you and your family’s current and long term goals/needs are #1 priority.

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avatar 70 Anonymous

I was watching a recent episode of the Today Show which featured a woman who was talking about the new home buyer’s credit. She was saying that the $8000 can be applied as a downpayment. I have seen no other assertion of this anywhere but if true would greatly speed up my purchase this year. I downloaded the 5405 form and it appears to require an address of a qualifying home but line three seems vague to me. If anyone has any thoughts on this I would appreciate it.

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avatar 71 Anonymous

I have not heard this. It takes 8 weeks to get it back, I guess it would require your lender to allow the funds to come back later as a down payment or something. I thought you couldn’t file for it until you’ve actually purchased the home. That is why it says date acquired. Date you purchased it.

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avatar 72 Anonymous

Hi, Im a little confused…..I purchased a home after high school (2001) in my maiden name, married in 2005, sold my home in 2008 and my husband and I have now built a home and closed 2/1/2009, the home is now in both our names Does this mean we qualify for the 8000. tax credit or not? I wasnt sure if because he was a first time home owner or because we now are married tax payers and this would be our first home as a married couple if we qualified?

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avatar 73 Anonymous

Unfortunately, you would not be eligible for the credit as you were a homeowner in 2008. To be eligible for the credit, you nor your spouse must not have had an ownership interest in any home for 3 years prior to the date of purchase of an eligible property.

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avatar 74 Anonymous

Your husband might if he hasn’t owned a home in the past 3 years. Check with an accountant. They can tell you for sure.

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avatar 75 Anonymous

If you sign purchase agreement in December 2008 for a new home that just began construction and closing will not be until June 2009, does that qualify for $8,000 credit? If so, can it be used on 2008 tax return? If not, does that qualify for $7,500 credit? Also, if requesting direct deposit, does it still take eight weeks to receive it?

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avatar 76 Anonymous

Your closing date is considered your purchase date on new construction as far as the IRS goes, so if you meet all other eligibility requirements, your June 2009 purchase date would quality you for the $8,000 credit. You could file an amended return after your regular return to add it to your 2008 tax returns, or wait and claim the credit on your 2009 taxes.

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avatar 77 Anonymous

I just read over the information on the IRS website and it says that for homes that you are having constructed, the “acquired” date is the date that you move into the home. Again, this is only for new construction homes.

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avatar 78 Anonymous

Yes, I read that the date of your certificate of occupancy serves as the “acquired” date for newly-built homes.

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avatar 79 Anonymous

Can anyone answer the other part of my previous question? “If not, does that qualify for $7,500 credit? Also, if requesting direct deposit, does it still take eight weeks to receive it?” Thanks.

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avatar 80 Anonymous

You qualify for the $8000 tax credit. I’m not sure on the time line.

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avatar 81 Anonymous

Thank you for all the posts above. Very helpful I will wait until March 31st to use TaxAct.

I didn’t see anyone talk about the information on Page 2 of form 5405 ” Amount of the Credit.
My Condo was 60K and my income is under 75K.

I see everyone saying that the credit is equal to 10% of the home price or $8,000 which ever one is less HOWEVER,…

The instructions on page 2 say ” You are allowed the full amount of the credit if your modified adjustable gross income is $75K or less ”

To me this says I can get the full $8000 not just the 10% which to me would be $6000.

Any comments would be very helpful. Thank You.
Mike

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avatar 82 Luke Landes

Mike: For you the full amount of the credit is 10% of the purchase price. The instructions on page 2 that you are referring to discuss the phase-out. If you earn over $75k, your full amount ($6k) would be phased out proportionally.

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avatar 83 Anonymous

Mike, you would qualify for the 8000 credit so forget about the 7500. The credit would be 6000 if your loan was 60,000. The whole you being able to claim the whole allowable refund is the whole allowable 10% or 6000. No you cannot get it quicker. You can’t even claim it on taxcut yet so go ahead and file your taxes now and after you’ve closed on it or moved in, then you can send in a 1040X and a 5405 to ammend and get the 6000. You can’t file for the credit until you actually have purchased the home because many deals fall through on the day of closing, so obviously they aren’t going to give you money until the sale is complete. As far as the time it takes to receive, I efiled my return and had it electronic drafted but you can’t do that with this new credit, so be prepared to wait it out to get that money. I don’t know if you have your normal refund electronic deposited if the $8000 will be too, or if they will mail you a check, but either way it will probably take awhile to process, and the electronic deposit would only be a few days quicker than the check in the mail anyway…

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avatar 84 Anonymous

Hi Jessica,

My husband and I purchased our first home on 3/11/09, after we received our 2008 tax refund. I prepared our taxes myself, and am wary of paying someone else to file an amended return to include with this new credit. Did you file you file an amended paper return or did you file using an online service, such as taxactonline?

Thanks,

Phoenix

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avatar 85 Anonymous

If my friend adds my name to his mortgage can I qualify for the credit?

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avatar 86 Anonymous

Do you know if there any kind of organized effort to push for similar retroactive treatment for homeowners who purchased in 2008?

Those homeowners did not require the extra incentive to purchase (which is what the whole credit issue is about), so why implicitly “punish” them for buying early. I personally know of some buyers that pushed through an expedited closing so that the purchase would occur in 2008 in order to claim the credit on the 2008 return; there was no option to close in 2009 and still claim.

I’m not looking to debate, I’m just wondering if anyone is aware of anything for such homebuyers to become involved with in an effort to obtain consistent treatment.

Many thanks.

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avatar 87 Anonymous

I am wondering if I can sell my home to my son he would be a first time home buyer and would qualify for the 8000.00 but someone said there is a provision about selling to relatives for the 2009 rebate? Anyone know any info? Thanks

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avatar 88 Anonymous

That will not work. If you are trying to get the 1st time homebuyer credit, you can not have purchased the home from a relative.

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avatar 89 Anonymous

I am interested in purchasing a home in the next couple of months. My Husband has owned a home within the past 3 years, but I have not. Does this disqualify me for the credit?

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avatar 90 Anonymous

My wife & I e-filed w/ H&R Block last month and owe the IRS…for math’s sake, let’s say $1000. We never wrote the check for $1000. So when we go to fill out our 1040X, do we just specify $7000 on line 23 (“Amount you want refunded to you”)…?? Or should we specify $8000 and assume the IRS knows we still owe $1000 and to send us a $7000 refund. OR should we go ahead and send the $1000 owed, specify $8000 on line 23, and just wait 8-12 weeks for the $8000? We’re just looking for some clarification. Thanks in advance!

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avatar 91 Anonymous

My son is interested in purchasing his first home instead of throwing away his money on rent. Unfortunately, he has not established enough credit to purchase a home on his own this year. What if I co-signed for him and have him listed as the owner? Would he be eligible for the tax credit when he files his tax return for 2009?

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avatar 92 Anonymous

Hey guys,

Just trying to see if anyone tried to use TacAct yet to file the 08 taxes with the new credit for homes purchased in 2009. I’m waiting until March 31st to try it. Sure hope it works.
Mike

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avatar 93 Luke Landes

The IRS won’t accept returns claiming the new $8,000 tax credit for homes purchased in 2009 until 7:00 pm EDT on Monday, March 30. I’d suggest waiting until March 31.

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avatar 94 Anonymous

I filed mine on TaxAct yesterday. Was approved today with no problems. Yay monies (Though nothing is ever really free)!

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avatar 95 Anonymous

My fiance and I have just gotten our loan and purchased our lot to have the builder start on our home. They are saying it will be move-in ready by Aug./Sept. I am unsure as to when we would be getting the refund. We qualify for the refund, but we won’t close on the house until it’s finished being build this summer/fall. Is it possible to get the money early for closing fees etc. or do the send this after you close?

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avatar 96 Anonymous

I have the same exact question. We too bought a land and the contractor has started building it and we hope to get our house by summer. Can someone tell if we can file for the $8000 credit now. We have yet not filed our taxes. TIA

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avatar 97 Anonymous

I am considering buying a home later this year.
I made $96k in 2008 and am projected to make $90k in 2009. Would it make sense to have my employer defer $15k of my income to 2010 so that I can qualify for the full credit?

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avatar 98 Anonymous

We have signed the agreement to buy a home from a reputed home builder. We have paid them a decent amount with the agreement and have the home cost, and all the details in the agreement. But the house will be delivered/closed in fall. Can we file for house credit this year, or do we have to wait until next year to claim the credit. I would really appreciate if someone could help clarify this. Thanks in advance.

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avatar 99 Anonymous

Great page. I have a question. What if you qualify for the $8000.00 tax credit that you don’t have to pay back, but you filed your taxes already and took the $7500.00 credit that you do have to pay back. Can your return be amended to change the status of the credit on your records with the IRS so they’re not coming for the money in the years to come, as well as to receive the additional $500 ?

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avatar 100 Anonymous

Yes, my son filed the amended return to receive the $8,000. he had already filed his taxes with the $7500.00. He will not have to pay it back but will have to wait up to 12 weeks for the extra $500.00.

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avatar 101 Anonymous

My husband and I closed on our house March 31st. We have been working on our taxes for over a week now and turbo tax is still rejecting our $8,000. We were told it could be a problem with using window’s vista and should try using window’s xp. This is very frustrating and before I enter my information again I would like to get some advise on if it’s Window’s vista causing the problem, or if they are still not accepting it through EFile. I saw a post earlier saying that TaxAct is accepting the new credit through Efile, so has anyone been accepted yet through Turbotax yet and if so, did you have the same problem before, and if so how’d you fix it?

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avatar 102 Anonymous

Can you please explain why a married couple where only 1 was a (in past 3 years)homeowner, cannot even claim 1/2 of the Credit, however, an unmarried couple can, in same situation, can claim full credit? My understanding is even if you filed separate returns, being married disqualifies you from the credit. Without proper explaination, this really feels like discrimination. ??? Btw…telling me it is just the way the law was written doesn’t float…because the HUD definition of First Time Home owner states if one qualifies, both do.

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avatar 103 Anonymous

hi, i bought a house in march 09,i called the place that does my taxes and she said if i filed a amended return for the 08 tax year, that i would only qualify for the 7,500 and i would have to pay it back over the next 15 years, but if i wait until i file on my 09 tax return that i would get the 8,000 and never have to pay it back.but by what i’ve read myself it seems to me that i would qualify for the full 8,000 no matter if i did a amended or if i waited until i filed my 09 taxes.does anyone know which is correct?please help if you can. thanks

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avatar 104 Anonymous

What happens if you receive the $8,000 & don’t end up buying a house? -JL

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avatar 105 Anonymous

Move to Mexico

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avatar 106 Anonymous

I am going to file 1040X and 5405 to claim for first-time homebuyer credit. Do I have to submit anything else? (for example, a copy of “buyer final closing statement”, proof of puchase). Thanks.

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avatar 107 Anonymous

Can you claim this credit if you purchase a home on a Land Contract?

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avatar 108 Anonymous

Hi — My brother and I are planning to buy a home this year. The loan will be in my name while the title will have both our names. This will be my brother’s first home and his MAGI will be below the $75k/95k limit. I will not qualify since I have purchased a home a few years back.

I combed through Form 5405 and numerous other sites and they all use the term “purchaser”. Will my brother be considered a purchaser and qualify for the proportionate amount even though his name is not on the loan (but on the title)?

Much thanks for your feedback,
Matthew

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avatar 109 Anonymous

i’m a first time home buyer and will close on a house 29th of may 2009 and tring to figure out how quick can i get the $8000? the reason i ask is because i was thinking of taking out a small loan for the downpayment then turning around and paying it off as soon as i get the $8000. my only concern is if i need to wait another year to get the credit will it be worth it. anyways i’m just tring to figure out if there’s anyway of getting the $8000 credit back within a month or so after i close? thanks.

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avatar 110 Anonymous

Ryan,

You have to have already closed inorder to qualify for the credit. There is something new that is allowing buyer to use the credit as their down payment, but I don’t think it will help since you close on 5/29.

It takes 8 to 12 weeks to get the tax credit. I filed my amended return on 4/18 and I am still waiting for the credit, so in lieu of the credit, I am just going to pay the down payment using my own resources and then use the tax credit to pay them back.

Randi

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avatar 111 Anonymous

i also filed amended return on 4/16 still waiting. called the irs they said they are reviewing it. i think it rediculous at 12 weeks no credit. i guess you have to be gm to get money the next day from irs.

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avatar 112 Anonymous

Original return filed first part of Feb 08. Amended return filed on Feb 10th to include home buyer credit. Amended return was paper filed. It is now April 17th.

Has anyone filed a paper return like I described above and actually received the credit?

From experience, does anyone know how long it takes to get the credit?

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avatar 113 Anonymous

I am a first time home buyer. I am moving in with my boyfriend who currently owns his house with his roommate. His roommate wants nothing to do with the house when he moves out in October. I am trying to refinance the house with my boyfriend. Do I have to purchase the house outright to be eligible for the credit or is there some way this works out for me?

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avatar 114 Anonymous

I closed on this house March 27th 2009, and just sent in my 5405 and 1040X. Also heard you needed a copy of your HUD, stating the actual contract cost/payment/offers/counteroffers, etc.

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avatar 115 Anonymous

going to buy a home in May, But I won’t be able to move in till February of next year, because I am personally going to remodel my self slowly. Because I have to work. Will I still qualify??

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avatar 116 Anonymous

If you’re building a new house you need a certificate of occupancy by Nov. 30, but if the house you’re buying is technically habitable when you close on it (and you don’t own a home now, right?), I would think you’d be okay. Might not be a bad idea to change your mailing address to the new place before you file your taxes next year.

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avatar 117 Anonymous

Curious… I bought my house on February 12, 2009. I Claimed the $8000 on my 2008 tax return, but the IRS changed that amount to $7500 because I claimed it on my 2008 return rather than waiting for 2009. I didn’t see this specified anywhere, I was just wondering if that happened to everyone? And can we claim that extra $500 on the 2009 tax return?

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avatar 118 Anonymous

The 2008 tax return is different. It is the one you have to pay back. You should have filed an ammendment for this years tax return (for 2008 but filed this year) and then you would have gotten the 8000, if this is what you did then something doesn’t sound right and you should call the IRS customer service to see what you need to do, because if you purchased this year then you should be getting the 8000 credit, not the 7500.. The 8000 is 10% or 8000, so also if you purchased a home that was 75,000 then that could be the reason you only received 7,500.

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avatar 119 Anonymous

Does anyone know what “supporting” documents I am required to send with 1040x and 5405?

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avatar 120 Anonymous

yes, you need to send a copy of the HUD statement as proof of purchase. This is what I sent, along with the 2 you mentioned…and I received my tax credit yesterday via check by mail. It was mailed out I think around mid march so it took about 6 weeks. Not too bad!!!

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avatar 121 Anonymous

RAWK ON!!!!!!

That means that 6 weeks from mid-april i get 8K for sending that in

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avatar 122 Anonymous

If anyone can help me with this:
We are just to close Escrow, so we should be able to qualify for the Credit. My father and I will be buying the house. My father is just a co-signer, my husband and I will be living there and making the payments, so in reality it’s our first home owned. My father currently owns his own home. My husband and I file our income taxes jointly. He does not have Social Security, so he uses and ITIN number to file. Does anybody know, if this will affect us in receiving the Credit, Thank You

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avatar 123 Anonymous

In general, both the parties have to have a SSN to recieve the credit. I am in the same boat. Please let me know if you know any other exemption.

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avatar 124 Anonymous

Anyone have a number that I can call and check on the 8000 dollar credit

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avatar 125 Anonymous

Parents who do NOT qualify for $ 8,000.00 tax credit just bought WITH unmarried child who DOES qualify for the tax credit … CAN child get PART or ALL of the tax credit … and HOW to do it. All appear on deed and all debt instruments > CO-MORTGAGORS and not just CO-SIGNERS.

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avatar 126 Anonymous

our son married a woman that owned her own home, but they were divorced this year. He is purchasing his own home next month. Will he qualify for this $8,000 stimulus refund on his 2009 tax return?

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avatar 127 Anonymous

What if i applied to the credit but i can the house now cause i got fired from my job. What happens if i keep the money? how do i repay it?… Vlady

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avatar 128 Anonymous

My wife, son and I purchased a home for our 27 year old son to live in while attending school in another town. All 3 of us are on the note and the morgage papers but my wife and I have made all the payments. His fiance’ closed on a home on 05/19/09. She had been trying to buy this house since 02/09 and has not owned a home during the last 3 years. While her buying and financing process drug on, my son and her were married on 04/18/09 which changed things. The lender did not require him to sign the note but did demand he sign the deed so technically he now owns this house with his new wife. Can they continue to file seperate 1040 forms in order for her to claim the $8,000 tax credit or did they just get married 31 days too soon? If her marriage to him made her ineligible can they obtain an annullment and then remarry in order for her to legitimatetly claim the credit? It seems unfair to allow co-habitaing but not married couples to claim the credit and then penalize this couple for getting married before she closed on her house. How about if she files as single using her new address while he files as single using his old address? Is there some kind of proof of their marriage date required when they begin fililng a joint return for 2010? Obviously we’d like for her to be able to claim the $8,000 tax credit on her 2009 return she’ll file during the first quarter of 2010.

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avatar 129 Anonymous

IF OUR DAUGHTER PAYS 150K IN CASH FOR HER 1ST TIME HOME, IS SHE ELIGIBLE FOR THE $8K? SHE’S A TEACHER AND MAKES LESS THAN 30K/YR.

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avatar 130 Anonymous

Sallie,
I don’t believe her method of purchasing the home has any bearing on whether she can claim the tax credit or not. All info requested on IRS From 5405 pertains ONLY to the purchase, not to whether any financing was obtained or not. As long as she’s the only person listed on the deed she should be eligible for the full credit. If you or any other person is on the deed with her, she will only be entitled to the relative percentage of the $8,000, e.g., if your name appears on that deed to her house, she’d only be entitled to 50% or $4,000.

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avatar 131 Anonymous

I sent out my amendment form for the new house tax credit, i mailed it May 7th,
does anyone know how long it will take for us to receive our refund. H & R block did the paper work but we had to mail it. so does anyone know how long it will take? I sure could use the money now.

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avatar 132 Anonymous

It took 10 weeks for my son to get his back.

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avatar 133 Anonymous

we have been waiting 13 weeks, we sent ours off on april 8 after calling them yesterday they are now telling me it could take up to 16 weeks

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avatar 134 Anonymous

My boyfriend and I are buying a home. He has never owned and I am in the process of selling mine. To qualify for the $8000 – my name could not be on the deed at date of purchase.?? Could be on the loan at date of purchase?? Is it possible to then add my name to the deed say a month later?

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avatar 135 Anonymous

Is Flexo no longer blogging on this site? I’ve not seen a comment from him since 03/29/09 and I was really looking for an expert’s advice to my post from 06/04/09. If anyone else out there knows the answer or can refer to someone or web site with the answer I would greatly appreciate it. Thanks!

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avatar 136 Anonymous

Amy,
I believe as long as you and your boyfriend were not married prior to the purchase he can claim the entire $8,000 but if your name appears on the deed to the newly purchased home he is only eligible to claim 50% or a $4,000 tax credit. You might refer to my earlier post from 06/04/09 to see me whining about the fact my son and daughter in law got married during the 90 days it took from her loan application date to her closing date. If you’re not on the deed to the new house and provided each of you file separate tax returns he (and you if he’s inclined to share) not only is entitled to the $8,000 but can even file an amended return for 2008 now and receive that money likely within about 10-12 weeks instead of having to wait until 2010 to get the money. Be sure he attaches IRS Form 5405 in order to receive the refund. It’s a very simple 1 page form and can be downloaded from the IRS web site. Hope this helps.

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avatar 137 Anonymous

My husband and I just moved into (in April 09) a home that we built ourselves. We have no mortgage so no HUD or anthing like that. We do however have reciepts for everything we bought. Would we still qualify for the credit or do you actually have to borrow money?

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avatar 138 Anonymous

You certainly do qualify! We’re in the same boat, and all you need to provide is a certificate of occupancy.

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avatar 139 Anonymous

You apply for and receive the credit after purchase. You need to pay for the down payment and closing costs at purchase time.

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avatar 140 Anonymous

You do not have to borrow money.

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avatar 141 Anonymous

i am wondering, my boyfriend owns a home and looking to refinance but requires a co-signer due to high dedt ratio. I have not owned a home in the past 3years and file a seperate tax return- do I qualify for the tax credit or half of the credit? plus I live in the home and my name will be added to the deed. let me know, thanks

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avatar 142 Anonymous

Since it’s not technically a purchase neither of you qualifies for any of the credit…UNLESS the lender handles the loan as a purchase money transaction in which your boyfriend sells the home to himself and you with a warranty deed or any other form of property sales form your particular state recognizes. By selling it rather than calling it a refinance the home ownership actually changes title from John Doe, an unmarried person to John Doe, an unmarried person and Mary Jones, an unmarried person. That way both of you own as tenants by the entirety. I would not recommend holding title as tenants in common because if you do and either of you dies, the property will get tied up in probate (expensive process) and the surviving owner is not entitled to the entire property.

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avatar 143 Anonymous

HI GARY, If i have not filed for the home buyers tax credit can i wait until i file for my 08 taxes next year?? i purchased in march 08

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avatar 144 Anonymous

I filed an extension this year, knowing I would purchase a house this year. We have decided to build a house that won’t be finished until the beginning of November. I have to file taxes by October 15. Can I still claim this house for 2008 taxes?

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avatar 145 Anonymous

You will need a Certificate of Occupancy by the time you file your 2008 return; however, the automatic extension for your 2008 return is not the final extension you can get. As long as you’ve paid at least 90% of your tax liability by 04/15/09 you can file for another extension on that return prior to 10/15/09. The IRS doesn’t have to approve your request but in most cases they don’t have any problem with issuing another 90 day extension. That should allow you to obtain your Certificate of Occupancy while still being able to claim the tax credit for 2008. Disclaimer…..I am not a tax professional and you should not rely on any of my suggestions as gospel. That’s why tax professional must prove their qualifications and make their income from dispensing advice knowing they have a bond guaranteeing you their advice is sound (although they’ve been known to make mistakes as well).

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avatar 146 Anonymous

I made under $75K in 2008. I changed jobs in October 2008 and will make more than $75K in 2009. I purchased a condo in April 2009 as a first-time home buyer. Originally I thought I would only get about $2K of the potential $8K for the homebuyer tax credit when I file my 2009 return.

However, does it makes sense to file for the credit this year using a 2008 amended return? Would I most likely receive the full $8K using a 2008 amended return?

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avatar 147 Anonymous

MJ,
This isn’t even a close call. It’s a “no brainer”. By all means file an amended 2008 return in order to receive your tax credit within about 10 weeks of filing that amended return. You can even file the amended return electronically but still tax credits are reviewed by IRS eyes in about 40% of the cases so you’re probably still looking at 8 weeks or so if you refile electronically. Don’t forget to attach IRS form 5405. Some folks have filed amended returns and been disappointed when hearing from the IRS over 2 months later that they failed to include that critical form. Save yourself some frustration and download the form from the IRS website now while you’re thinking of it.

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avatar 148 Anonymous

i’m kinda in the same situation…

my 2008 income qualifies me for the 8k credit, however my 2009 income wont. i’ve been wondering if i can 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? i was thinking that if i purchase more towards at the end of the year, i’d have to use my 2009 income (and def i wont qualify = ( … )

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avatar 149 Anonymous

Gary,

Thanks so much for your help. Just one follow-up. Is there a deadline for filing 2008 amended returns?

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avatar 150 Anonymous

Yes, generally speaking there is a time limit. There are some extremely rare cases dealing with returns filed by expatriots where they might be allowed to file a 1040X for up to 10 years past the original filing date but for this discussion you may file an amended return up to 3 years after you filed the original or 2 years after you actually paid the tax liability, whichever term is shorter. For example if you filed your return 04/14/07 for the 2006 tax year you have until 04/14/10 to file a 1040X UNLESS you didn’t actually pay your full tax liability until a later date of say 10/15/07 in which case you’d have to file the 1040X by 10/15/09. Expect to receive any additional money due you no sooner than 10 weeks after you file the 1040X, particularly during the summer months when more IRS employees are on vacation. That’s because just as Flexo says below, you can complete your 1040X using tax preparation software such as Turbo Tax or Money but you can not file it electronically. You will need to print off a copy (also one for your records) and mail it to the IRS (don’t forget to include any forms supporting your request for an additional refund like the 5405 when claiming part or all of the $8,000 first time homebuyer credit) because amended returns actually have an IRS employee review them before they give you any money back. My local IRS office states their policy allows for 8-12 weeks to process and get you your additional refund. That still beats waiting until 2010 to get it after filing your 2009 return though.

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avatar 151 Anonymous

I was under the impression that the IRS didn’t allow you to efile amendments! How do you do this? I was just getting ready to mail mine today, but if I can efile I’d sure rather do that!

Thanks!

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avatar 152 Luke Landes

You can use online software for completing your amended return but you must print and file the form by mail.

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avatar 153 Anonymous

MJ,
I was incorrect in advising you that you could file a 1040X electronically. Flexo is correct when he says you can use tax software to complete the form but you MUST print and mail it to the IRS along with any supporting documents such as the 5405 form. See, I told you I wasn’t a tax professional. (smile)

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avatar 154 Anonymous

i’m kinda in the same situation…

my 2008 income qualifies me for the 8k credit, however my 2009 income wont. i’ve been wondering if i can 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? i was thinking that if i purchase more towards at the end of the year, i’d have to use my 2009 income (and def i wont qualify = ( … )

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avatar 155 Anonymous

riesling,
The Warranty Deed must show ownership of the property being transferred to you on or before 12/01/09 period! As far as filing an amended 2008 return you’ve got plenty of time to file that 1040X return to claim your tax credit. Here’s a question for you though. Since it requires filing an amended return to claim this on your 2008 return and you can’t file your amended return by e-file does it make more sense to go to the trouble of filing a hard copy only to wait 10-12 weeks to receive the money as opposed to just filing your 2009 return as early as possible in 2010 (let’s say 02/15/10 hypothetically) electronically and receiving your refund/tax credit within about 3 weeks? It may be about as broad as it is long but less paperwork if you don’t buy until close to the 12/01/09 deadline. You file an amended 2008 return on 12/05/09 and wait until perhaps as late as 03/05/10 or just file for the credit on your 2009 return electronically and receive your money/credit within 2 or 3 weeks of filing???

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avatar 156 Anonymous

My father helped me qualify for a home so his name is on the deed, can I take him off the deed for me to qualify for the $8,000.00. He has his own home, this home will be my first home bought and I will be living there, I will be making all payments.

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avatar 157 Anonymous

Jess,
If he had to be on the deed for you to qualify it’s likely his name also appears on the mortgage. It’s problematic as to whether your lender (assuming one is involved) would allow you to remove your father from the loan and the deed. A Lender’s philosophy runs along the lines of “we’d rather have 2 horses pulling the wagon instead of 1 if given the option.” You are still entitled to 50% of the tax credit expressed as 10% of the purchase price not to exceed $8,000. This is because you and your father are co-owners and while he isn’t eligible to claim any of this tax credit the co-owner who meets the qualification of not having owned a home in the last 3 years DOES qualify for a percentage commensurate with the percentage of ownership he has in the new home. In other words if your purchase price was $60,000 you’d be entitled to claim $3,000 but if the purchase price was $80,000 or more, your credit maxes out at $4,000.

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avatar 158 Anonymous

We are purchasing a home right now. I bought a house 11 years ago, we are still in it. My husband moved in when we married and I filed a quick claim deed for him. Our house is on the market but I doubt it will sell before the closing on the new house. In this market…who knows how long we will have double payments. Our income would qualify us for the 8000 credit. What about the fact that we still have a house? Will that disqualify us?

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avatar 159 Anonymous

Tricia,
You are not eligible to claim any Tax Credit in connection with purchasing a new home. The fact that you and your husband are on the deed to your present home at this time or any time within the last 3 years disqualifies you for this particular credit.

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avatar 160 Anonymous

We bought our first house on 29 december 2008. Is there anyway we can claim the $8000 tax credit.

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avatar 161 Anonymous

Ripa,
Sorry but timing really is everything with this program. Had President Elect Obama announced he intended to get this legislation introduced and passed prior to taking office it’s likely a lot of people would have postponed closing on their purchases. You still got a good deal if you qualified under the old plan by getting to claim the $7,500 tax credit on your 2008 return even if you are required to pay it back over the next 15 years. It’s an interest free loan which only requires you to repay $500 a year as long as you own the house. Of course if you sell the house in 10 years you’ll have to repay the remaining $2,500 of the original $7,500 from the proceeds of your sale unless you want to trust yourself to have an extra $2,500 lying around on April 15th. It’s true the 2009 Act is a much better program for first time homebuyers by allowing 10% of the purchase price up to the maximum of $8,000 and not requiring any payback at all the 2008 deal still was a bad one either. Bottom line is that in order to qualify for the entire $8,000 with no payback you must not have owned a house for the previous 3 years and close on your purchase between the dates of 01/01/09 and 12/01/09 inclusive.

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avatar 162 Anonymous

What portions of the 1040X do I have to fill out for the first time home buyers credit

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avatar 163 Anonymous

George,
You’ll need to complete all of it but it’s a fairly straightforward form which pretty much walks you through all the steps. Just be sure to attach your form 5405 which is even a simpler form to complete. Just follow the instructions on the form and remember that you must mail your 1040X along with the 5405 and supporting documentation to the IRS. You can not file a 1040X electronically. You can go to http://www.irs.gov for additional information and froms suitable for printing. Good luck!

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avatar 164 Anonymous

I have owned my home for 3 years. I am considering refinancing with my boyfriend. He qualifies as a first time home buyer as he has not owned a home in the previous 3 years. Will he be allowed the credit if I refinance with him, which would make him a first time home owner?

If not, I’m considering selling my house to him. We’re planning on putting the entire credit against the mortgage to lower our payment. I’m not concerned about selling to him as we’re planning on getting married in 2010 and I trust him expliciately. Also, both of our wills will clearly state where the house would go if one of us were to die.
I want to make sure which ever way we do it, it’s completely legal. Is it?

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avatar 165 Anonymous

If you refinance in both names before 12/01/09 and you are not married yet, he may claim 5% for his portion of the value of the home up to a maximum of $4,000; however, if you sell the home to him under a warranty deed and he can qualify for the home loan by himself without you on the loan, he can claim 10% of the purchase price shown on the transfer (sale price) up to a maximum of $8,000. Oftentimes a person who is attempting to do this won’t qualify to borrow the money because of a high debt ratio. With the crazy market we’ve been in for the last year or so, most underwriters have gone back to the old standard ratios of only 28% of a person’s gross income being allowed to go toward the PITI (principal, interest, taxes and insurance) total payment followed by a maximum debt to income ratio (including all debt monthly payments + the house payment) of 36%. Those figures had gotten up to 35% and 40% respectively until earlier this year when virtually all underwriters began tightening the reigns on credit. If he doesn’t qualify by himself you’ve still got the option of selling the home via warranty deed to both of you as part of the refinance and him (only) claiming 5% of the purchase (refinance amount) price up to a maximum of a $4,000 credit.

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avatar 166 Anonymous

I am purchasing my first home and I need to know how to use the $8000 tax credit,What I need to know is how do I go about acutually getting the money now so that I can use it as a down payment ,I don;t want to wait till I file my tax return.again I need to know what the steps are to get the money now

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avatar 167 Anonymous

What you are inquiring about is probably the most misunderstood item related to the First Time Homebuyer Tax Credit out there today. There are very precise steps that must be followed closely in order to gain access to the $8,000 and actually use a portion or all of it as down payment money. There are even some attorneys who disagree on this. Some say you must file an amended 2008 tax return and wait the 10 to 12 weeks it takes to receive that money before closing on the loan while others say they’ve figured out a way to apply it directly as down payment money. Still others say the only way to pull this off is if you’re obtaining an FHA, VA, FMHA (Farm) or a loan that is preapproved by Fannie May or Freddie Mac. The only cases I’m aware of where anyone was actually been able to utilize the money as down payment funds were those loans administered by the United States Department of Agriculture Rural Development Agency. With this program you don’t actually apply the $8,000 Tax Credit to the down payment itself but rather this agency funds the loan with zero down payment which leaves you with getting the $8,000 later to use for furniture, adding a patio, etc. but be aware you must have a decent credit score (or no score at all) to qualify for this type of loan. The home doesn’t necessarily have to be located in a sparsely settled area but I do not believe homes in major metropolitian cities are eligible for this special program. Since this particular program is so specialized I would recommend you speak with a mortgage professional and more specifically a mortgage broker. I say this because the brokers must stay up to date on every little nuance which involves mortgage lending because they utilize so many different funding sources; much like independent insurance agents who write policies through a variety of companies and not just one company. Find out more about this special no money down loan program at USDAloans.com

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avatar 168 Anonymous

How does the goverment know if I owned a house in the last three years? What about this vacation home exemption? What if I owned the property but rented it out and lived with someone?

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avatar 169 Anonymous

Bill,
Don’t you know the government has almost everyone “on the grid” anymore? Seriously, they use Social Security Number matches to see if you claimed any mortgage interest as a tax deduction on your last three years of 1040 forms. If a lender issued you a 1099-M form for any one of the last 3 years they also supplied the government with the same information. Vacation property can be exempted only if it is truly located in a recognized tourist destination spot and you can prove you didn’t stay in the house/condo for more than 14 days during any one year period. Be careful as filing a false return is a Federal Crime and not viewed lightly by the IRS. You need to be knee deep in facts and supporting documentation if you intend to claim the only property you owned was a rental. The IRS can be quick to challenge your reporting for the last 10 years with a special emphasis on the last 3 years. You are on your own if you try to get cute and “beat the system”.

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avatar 170 Anonymous

I bought a home in 2009. My sis co signed for me cause I had too much credit out. Can I get the full 8,000. The house is all mine and she has no interest in it. She was just helping me out on paper. I filed an amended and the irs got it 3/26. Still no word. They said Wait an additional 30 days for a response. And they are paying me interest. And if still no word by 7/16 a specialist has 7 days to contact me. I just hope they are not gonna want her to file for half. Cause she will not wanna do it for me till next year.

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avatar 171 Anonymous

yvonne,
Check your paperwork closely. Odds are that if sis had to co-sign for you she also has an interest in your property although this can vary by state. Most lenders don’t like complicated arrangements and usually put all signers on the promisory note AND the deed. While I’ve seen cases of multiple owners on a deed with only 1 of the owners on the note it’s rare (but not impossible) a lender would require her to sign the note and not the deed. Your lender can tell you if at the end of the year they plan to issue a 1099M form (interest paid on the home loan) to you only, 1 for each of you or if they plan to list both your names on 1 form and let the 2 of you sort it out between you as to who will take the mortgage interest paid deduction on your 1040 (tax) forms. If sis’ name and signature appears on the deed along with your name she is definitely a co-owner. The question then becomes “did you take title as tenants in common or joint tenants with rights of survivorship?” If you took tile as JTWROS and you die, she gets the house. If you took title as tenants in common, only your immediate heirs are entitled to the property, e.g., husband, a parent or children of legal age. They would also take ownership with the obligation to satisfy the mortgage debt. If your sis has owned a home in the last 3 years I would say you most likely will qualify for only half of the $8,000 tax credit. The IRS may have set your request aside for special handling in order to determine how much if anything you are eligible for; hence the extra 30 days. This is assuming you did remember to attach form 5405 to your request. Don’t be offended. You wouldn’t believe how many people have filed for this tax credit and failed to attach the proper documentation.

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avatar 172 Anonymous

Hey, thanks for the reply. My sis and I have never owned a home and the paperwork shows joint tenants. We both would qualify. So I know worst case scenario would be we would each have to claim half. I did include form 5405. I actually had hrb do my amended return. But even they weren’t sure. Cause they said this is all new. She helped me on paper. But when it comes to the house It was my down payment and the lender said they could remove her in 2 years. And all the paperwork comes with both our names on it. I wonder if I can let the irs know all this?

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avatar 173 Anonymous

At this point my advice would be to just wait like the IRS says to see if they need any additional information. Whether you own this house or you and sis own it still depends entirely on whether her name and signature appear on the deed. It’s interesting that even H & R Block’s rep couldn’t give you a definitive response. As you said, it sounds like the very worst that could happen is that you and your sis will each be eligible for $4,000. My guess is that you’ll have your money by the first of August.

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avatar 174 Anonymous

Hi all,
I read thru all the blogs rather quickly to try and find an answer to my question, but didn’t see it asked anywhere. I am wondering if purchasing a home via land contract, rent-to-own, or lease with option qualifies for the tax credit. I have never owned a home and right now, thanks to a nasty divorce, I don’t have the credit for a conventional loan. Anyone have any idea? Thanks!

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avatar 175 Anonymous

shannon,
The whole idea behind the $8,000 tax credit for first time home buyers is to assist people with obtaining home ownership. Unfortunately, land contracts, rent-to-own or lease with option transactions do not get the home transferred into your name prior to 12/01/09 in order to be eligible for the credit. If you can get a seller to actually SELL you the home and carry back the mortgage on it which still requires you to make monthly payments on it, a warranty deed (transfer of ownership) would be created and filed at your county courthouse in the Recorder of Deeds (sometimes called Registar of Deeds) office which WOULD make you eligible for the tax credit. The deed must be transferred into your name by 12/01/09 to qualify under the existing act. Be careful when purchasing via land contract or any other method that does NOT actually involve a transfer of the deed! Have an attorney review any such agreement before you sign it. In many cases, the tax paying home owner can evict you with no more than 30 days notice if he later decides he’d rather get all his cash sooner rather than later. Also if he doesn’t pay the real estate taxes the taxing authority could actually seize the home and sell it out from under you on the courthouse steps to another party (often an investor) who once again can evict you by serving notice of his plans to do so. While any TRUE mortgages can be sold to another party the buyer of the note can NOT change any of the terms your original seller agreed to when he sold you the home.

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avatar 176 Anonymous

i will be buying a mobil home with land that was originaly worth $45k i will be taking over the loan via owner finance assumable loan with about $40k on the loan will i qualify for the 10% tax credit and if so will it be for $40k or $45k

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avatar 177 Anonymous

A mobile home does qualify under the act provided it includes the land it sits on. Your tax credit can not exceed $4,000 because that represents 10% of what will be considered your purchase price. The actual value of the home plays no part in the calculation. While the seller has assured you his loan is assumable, be positive his lender agrees and is willing to have you sign documentation which obligates you to pay the lender directly ( don’t make payments to the seller if he suggests you do so and he’ll make the payment to the lender) and assures you there’s no way the seller can ever come back and reclaim the property. Oftentimes lenders will allow a buyer to assume a mortgage obligation via what is called an ASSUMPTION AGREEMENT; however, they retain the right to go after the seller in the event you should default on the loan. That’s why a lot of veterans who purchased homes several years ago utilizing their VA benefits and then sold them via assumption agreements found that when they went to use their VA benefits again to purchase another home discovered they could not use the benefit of a VA loan a second time until the previouis loan was paid off. In some cases that might be several years before the buyer of their previous home would refinance or sell that other home.

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avatar 178 Anonymous

I purchased my home in 1994 sold it to my son in 2005 to prevent a foreclosure and be able to stay in the house. He bought it from me for $125,000 and I gifted back $25,000 so the loan amount ended up being only $100,000. I paid rent every month since. The house would sell for around $139,000.
I would now like to purchase my home back now. I heard there is a relative clause in the stimulus package that prevents you from buying or selling among relatives is this true? If not what is the best way to purchase the home back and be able to have him gift the most monies back to me or at least a part of the $25,000 I gifted to him and take advantage of the $8,000.

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avatar 179 Anonymous

Kay,
The IRS refers to real estate transfers that are “less than an arm’s length” transaction, i.e., transfers between relatives and those are scrutinized very closely. They have seen just about every trick in the book; however, that doesn’t mean it’s unlawful for relatives to sell property among themselves. What the IRS does look for are transactions involving sales under market value and moving property in and out of Trust Accounts to avoid taxes. I would not feel comfortable giving you advice about your specific situation and instead would encourage you to seek competent legal council before moving forward with your proposed purchase from your son. A tax attorney isn’t cheap but he/she could still be a bargain if you can legally construct this property transfer and claim the $8,000 tax credit. More importantly, a tax attorney could prevent you from making a technical error that might result in not only missing out on the tax credit but subject you to some sort of penalty for attempting to claim the credit when you were not qualified to do so. Caution should be used before attempting to put together something that could later unravel on you after you receive the $8,000 and wind up costing you not only the $8,000 but additional tax and penalties.

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avatar 180 Anonymous

I am purchasing a house which is scheduled to close July 31st, 2009 and the bank told me I qualify for the $8000 from the government so how do I go about collecting it? Can I get it this yeaar or do I have to wait until tax time next year? Thanks!

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avatar 181 Anonymous

David42,
You can claim the $8,000 sooner than next year by filing an amended 1040X return as soon as you close on your home; however, be prepared for a lengthy wait to receive your funds. Amended returns can not be filed electronically but have to be completed and delivered by snail mail. The wait was initially 10 weeks, then 12 weeks and some people who filed up to 14 weeks ago are still waiting for their money. If you file your 2008 amended tax return, complete with form 5405 (download this from IRS.gov/forms) during the first week of August you “might” get your check by Christmas. With the economy being what it’s been it seems the majority of qualifiers for the tax credit have chosen not to wait until they file their 2009 returns and the volume has just swamped the IRS with requests.

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avatar 182 Anonymous

Thanks Gary, Will do just that. I am going to buy the house back regardless of getting the $8,000 or not. I was wanting to find out if it was possible to get to take advantage of that tax break as well. Thanks for your advise.
Have a great 4th.

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avatar 183 Anonymous

if we were to rent out the basement in the house we were looking at getting would we still be able to get the credit?

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avatar 184 Anonymous

I believe you might techncially disqualify yourselves since a portion of the home you’re purchasing would be considered commercial property; however, I suspect you would probably not be challenged if you aren’t going to rely on the rental income to qualify for any loan you might be obtaining to purchase the home. One thing for sure is that if you do NOT rent out a portion of your new home until after the 3 year moratorium expires you would be entitled to keep the entire 10% of the purchase price up to the maximum $8,000. The 3 year waiting period is how long you must stay in the home as either your first or second residence in order to escape the clause in this Act that would require you to repay the tax credit to the government. Remember, the intent of this Act is to encourage more renters and other non-homeowners to invest in a single family home. There will be some folks taking advantage of the ability to convert a bedroom into a home office for which they can deduct a portion of their house payment commensurate with that potion of their home which serves as an office for their small business, e.g., if your home is 2,000 SF and you use a small 10 x 20 room for an office you can deduct 10% of your utilities and house payment as a legitimate business expense. Some people might suggest you just keep the rental agreement “off the books” and always have your tenant pay in cash but as a business professional I can’t really advise you to do that.

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avatar 185 Anonymous

so i purchased a home this year late march and i applied for the 8,000 dollar refund and i recieved a letter from the IRS saying i purchased the home too late. Is there anyone who can help me figure this out?

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avatar 186 Anonymous

There are 2 programs you could refer to when claiming the Tax Credit. The first one has to do with the $7,500 Tax Credit for qualifying first time home buyers who purchased in 2008. That’s the one that has to be repaid over a 15 year period of time. The second one is for the 2009 Tax Credit which is $8,000 and never has to be repaid as long as you made your purchase between 01/01/09 and 12/01/09 and don’t move out of the home for a minimum of 3 years. You may have done what some others did and checked the wrong box on your form 5405. If that’s the case, be glad the IRS didn’t give you the $7,500 Credit because you’d then have $500 withheld from your future tax refunds for the next 15 years. You may ask yourself why the IRS couldn’t look at your attached documents and know full well you were actually applying for the 2009 credit but you have to remember……..you’re dealing with the IRS here. It shouldn’t be too hard to clear up though. Just file an amended 2008 1040X and be sure to check the box on form 5405 identifying the credit you’re applying for is the $8,000 one for a home purchased in 2009. Not a bad idea to attach a copy of your loan settlement sheet as well (HUD 1). Remember that you can’t file this 1040X form electronically. It must be mailed and the wait for the check at last count was up to 14 weeks and counting. If you file by 07/15/09 you “might” get the refund check before Christmas.

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avatar 187 Anonymous

My home is being built but it wont finish till nov. 30th barring any problems. I dont think I will close by DEC 1, 2009. What can I DO? Did I just lose my 8k?

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avatar 188 Anonymous

Unfortunately it would appear that you will likely miss out on this particular portion of the Stimulus Act but you might want to consider splitting the $8,000 with your contractor if he can get your home finished to the point where a lender is willing to make the mortgage loan no later than 12/01/09. Even if he can’t do that just remember that many folks jumped on the bandwagon to beat the 12/31/08 deadline in order to get the $7,500 Tax Credit which has to be repaid over the next 15 years only to discover that had they waited until January, ’09 their Tax Credit would have been $8,000 with no payback required at all. Who knows what incentive might be made available out there after 12/01/09, particularly if the economy is still sputtering along at that time.

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avatar 189 Anonymous

Thanks for the help Gary.

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avatar 190 Anonymous

Where can i file an amended 2008 1040X form?

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avatar 191 Anonymous

Luis N.,
You asked where you can “file” the form and the short answer is of course with the same IRS office you would normally send a standard 1040 form to but I suspect you may have been asking where you can FIND the form 1040X. Again, a fairly short answer. They are generally available from your local post office, your public library and from the IRS web site. I like to get my forms directly from http://www.IRS.gov because the odds of the form being the most recent edition are better if it comes directly from the IRS. Some folks have found forms from the post office that were outdated and since the tax laws seem to change almost monthly of late the IRS website is by far your best bet.

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avatar 192 Anonymous

Would the purchase of a home by my mother put into my son’s name qualify him for the tax credit? He is a student in college with no income so to speak.

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avatar 193 Anonymous

I am a mortgage broker and I have a question for my clients.

I have a daughter who can not qualify for a mortgage so the parents are going to co-sign so she can buy her primary residence for her and her husband. However, I am having difficulty convincing the underwriter that the parents are actually co-siging…they believe the parents are just using the daughter to purchase an investment property, which is crazy, but apparently HUD (FHA) is having a problem with this and is really cracking down on the underwriting of FHA loans.

So, my financing may have to change in that I will need put the mortgage into only the parents name, however still close title with all three borrowers on title.

This is from the IRS website:

S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much?

A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A’s primary residence.

I did not see anything about the borrower (daughter) having to be on the mortgage – only “if the home was purchased as Taxpayer A’s primary residence”.

Do you think the daughter would still qualify?

John

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avatar 194 Anonymous

The loan and the homeownership issue are not mutually exclusive; however, to illustrate why the daughter is still entitled to the entire tax credit, consider the situation if the parents simply paid cash for the home but still had the daughter placed on the deed. Many older couples employ this method when they have only 1 child living because it removes that asset from having to go through the Probate process. One cautionary word here though. Do NOT place the daughter’s husband on the deed if he has owned a home within the previous 3 years. In that case the credit would be lost. Also placing the child’s spouse on the deed means he would be entitled to his share of that home (or any proceeds from a sale) should they divorce. The husband could still claim marital interest in some states but that can become messy and expensive for all concerned.

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avatar 195 Anonymous

My wife and I closed on our house 3/28/2009 we are first time home buyers but still we didn’t find $8000 how can we got . Thanks daniel

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avatar 196 Anonymous

First of all…shame on your buyer’s real estate agent for not pointing out the tax credit you are entitled to. Any agent worth their salt would have used that point as an additional sales tool to encourage you to purchase. That agent failed to fulfil the fiduciary responsibility incumbent with obtaining a license to sell real estate. But take heart, all is not lost. Simply download form 5405 from the IRS website, complete it as instructed and submit along with your 2009 tax return and be sure to includ any supporting documentation such as the HUD-1 Form (the settlement sheet both you and the sellers had to sign at the closing which itemizes who paid for every item involved in the sales and/or financing transaction). You may wait and file this paperwork along with your 2009 tax return in 2010 or you can download an additional form from the IRS website known as a 1040X or Amended Tax Return for a previous year and claim the credit on your 2008 tax return. If you choose to file an amended 2008 return, expect it to take up to somewhere between Thanksgiving and Christmas before you receive your check. While you may claim this tax credit on your 2009 electronic tax return filing, the same is NOT true if you choose to go the Amended Tax Return route to claim this credit on your 2008 return. All 1040X (amended) returns must be filed via snail mail as the IRS won’t accept them in electronic filing format. This is because they must do at least some cursory investigation to be sure you really do qualify for the Tax Credit. Some people try to hide the fact they or their spouse has owned a residence within the prior 3 years or incorporate the Tax Credit into a purchase of investment property. The government will run a social security number search to see if you or your spouse has claimed any mortgage interest deductions on tax returns for 2005, 2006 and 2007.

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avatar 197 Anonymous

Thanks alot Gary. You are very helpful. Im still unsure about something though. If i have already filed my taxes and recieve my tax return. do i still have time and am i able to still apply for the home buyers tax credit?

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avatar 198 Anonymous

Luis,
The short answer to your question is yes. Because the Stimulus Act wasn’t signed until February it included a clause allowing anyone who qualified for the Tax Credit by purchasing a home between 01/01/09 (retroactively) and 12/01/09 to claim the credit on their 2008 return if they had not already filed their 2008 return or to file an amended 2008 return if their purchase occurred after April 15th and they’d already filed their 2008 return by using form 1040X. The unintended consequence of this Act allows those folks who have already filed their 2008 return, even if they received a refund to file an amended return and receive the credit via electronic funds transfer to their bank account or have a check mailed to them. This will hold true even for people who close on the new purchase right up to 12/01/09. The most important thing to remember though is to complete form 5405 and include some paperwork to prove you actually did close on a primary or secondary residence during the eligible time period and MAIL the paperwork (no efiles allowed on amended returns) to the same IRS office who normally handles your returns.

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avatar 199 Anonymous

So we filed the amended tax forms for the 8,000.00 credit, but it has been over 6 weeks ago…has anyone actually received the money from the refund???

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avatar 200 Anonymous

My wife and I filed an ammended return (via our tax attorney) in the first week of June. We sent a hard copy via certified mail. It is now August and we haven’t recieved any answer on the time frame. The blanket answer of “6-8 weeks” seems to be false. Additionally, our tax attorney states there is no way to track the payment/ refund like you can on your traditional tax forms. The best guesstimate I have been able to verify is that folks will be getting these incentive payments more toward the end of the year.
This is obviously a bummer, but with the way the IRS is processing these ammended forms there is simply no dependable way of setting time tables.

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avatar 201 Anonymous

has anybody herd what the current time frame is ? I was told yesterday that it could take 16 weeks I shure hope not.

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avatar 202 Anonymous

I am glad to find this website. Regarding the 2009 Federal’s $8,000 incentive, I’ve been told by my agent that it’s simply a cash check and I should check my mail box at my newly purchased property for required claim forms to be mailed to me by government. Now I finally understand, after reading your informaiton, the incentive is actually a refundable tax credit, and I should take initiatives instead of waiting.

I bought a property in June 2009 with all cash as my first own principal residence. So, should I just I follow your #178 answer on 7/7/2009 to file an amended 2008 1040X?

Another question is even sillier, but as I always filed my tax returns online, I have no idea but need to know where I can get the right paper forms for filing an amended 2008 tax return?

Thanks for help.

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avatar 203 Anonymous

my husband and I purchased our first home in April and ammended our taxes on turbo tax. Does anyone know how long it will take to get our refund and will it be faster since we chose direct deposit?

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avatar 204 Anonymous

You should have already received your refund; however, the tax credit portion may take longer as they are doing random testing in an effort to catch people trying to cash in on the credit who don’t actually qualify for it. There’s a toll free phone number for the IRS posted on their web site you may use to check the status of your refund. Expect several days to receive a response if requested by phone or mail but email responses are generally going out within a couple of days. Your refund will always be much faster if you used the eFile system available as a service for all Turbo Tax customers. Many people report getting their refunds deposited to their bank accounts within 3 weeks of filing as opposed to the traditional 12 weeks it takes to receive a check.

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avatar 205 Anonymous

At the rate the IRS is proceeding now, look for your check somewhere between Thanksgiving and Christmas. If enough people will contact their Congressional Representatives and Senators you could probably see the IRS hire more temporary workers to get this stimulus money out to the people sooner. The recovery can’t begin until people have extra money to spend. Senators love to step in front of the cameras and announce things like, “My subcommitte has scheduled hearings on August 11th to have the Head of the IRS come in and explain to us (and the American People) why it’s taking so long to get this money out to the folks who are entitiled to it.” Pester your Senators and Reps with emails and phone calls. They’ll get the message.

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avatar 206 Anonymous

If you tried to file your amended return by E-File it will be rejected. Amended returns must be filed the old fashioned way (snail mail). You may want to get ahead of this by submitting another amended return manually now because they will most likely throw out your emailed amended return.

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avatar 207 Luke Landes

For those asking how to file an amended income tax return I have assembled a step-by-step guide: http://bit.ly/vRTEj

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avatar 208 Anonymous

Flexo,
Very nice job and anyone following your step by step process should have no problem getting their Tax Credit approved. I’m not a tax expert either but my CPA has advised me the IRS will credit your account electronically if you request it. They don’t want lost checks any more than the recipients do and they’re under a little heat right now to hire more agents and step it up with getting this money into the economy quicker than they’ve been doing so far.

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avatar 209 Anonymous

CAN I FILE THE 5404 AND THE 1040X WRITTEN OUT BY HAND OR DOES IT HAVE TO BE TYPED?

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avatar 210 Anonymous

That’s a 5405 form and while you certainly can complete the form by hand, don’t expect the IRS to take a lot of time trying to decipher your handwriting. As with anything be sure to write legibly or even better use block letters.

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avatar 211 Anonymous

My husband has a house on land contract from before we got married, I think that he may have marked that he owned his house on his taxes in the past, however the deed is not in his name due to the land contract and he doesn’t technically own the house. I recently (June 2009) purchased a house in my name entirely, he is not on the mortgage/deed/etc. Do we still qualify?

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avatar 212 Anonymous

Kara,
You may have a “catch 22” situation here. Unfortunately there’s a marriage penalty tied to this particular Tax Credit. It doesn’t matter if you purchase the home on your own or not. The IRS will check to see if you filed a joint tax return with your husband and disallow the credit if they cross check his SS # and find that he claimed mortgage interest on the other house even though he didn’t technically own it. The sad fact is that had you not been married when you purchased your new house last month the situation of whether he owned a house or not would not matter. I don’t know how long he “owned” the other house but the only way I see for you to qualify for the credit would be if he went back and filed amended returns for every year in which he claimed the mortgage interest deduction and recalculated his tax liability. It might be worth it if he’s only had the house 2 or 3 years but likely not worth the hassle he’s been claiming mortgage interest paid for 5 years or longer.

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avatar 213 Anonymous

My wife and I got married on 4/25/09, we then bought a house on 7/1/09. We filed separately for 2008 so how would we file an amended return for 2008 to get our tax credit? Joint/Single? Would it be easier just to wait until we file jointly for 2009?

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avatar 214 Anonymous

The answer to this question depends on how much paperwork you want to get into and how long you are willing to wait for the tax credit. It’s only necessary for 1 of you to file an amended return and submit it via snail mail to the IRS with your 5405 form and proof of purchase attached; however, it’s taking up to 18 weeks now for people filing amended returns to expect their checks according to the IRS. In other words if you file the necessary paperwork by 08/05/09 you likely won’t receive your check until right around Christmas. If it were me I think I’d just wait now and file for the credit on the joint return you and your wife will be filing in early 2010. Then you can file electronically and get the benefit of the credit within only 2 or 3 weeks from the filing date with a lot less hassle.

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avatar 215 Anonymous

I sent my 1040X and 5405 (filled out on turbo tax) in on May 21st. I called the IRS yesterday and the guy said it hasn’t even been put in the system yet… and that there “may” be additional information/paperwork needed. Is this something that is happening to a lot of people and if that happens it will delay the return. I was counting on having the money by the end of summer is that still a possibility? Or when can I possibly expect to see my money.

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avatar 216 Anonymous

If it seems like the IRS is making up some of these rules as they go along it’s only because it’s true. This program is much like when Congress passes a law that requires government agencies to do something but fails to provide the funding to implement it. The IRS had this dropped on them with very little warning and no suggestions of how to handle the increased manual paperwork. I don’t think the Administration and Congress realized that form 1040X is one of the few forms that can NOT be filed electroncially so every one has to be handled manually. I think they’re probably doing the best they can under the circumstances. If you submitted your 1040X with only the 5405 form attached you can definitely expect to be asked to provide some kind of proof that you actually purchased a home. My suggestion is to include a copy of your legal size Settlement Closing Sheet unless it was a brand new home in which case a Certificate of Occupancy will do for homes located in municipalities who issue those forms.

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avatar 217 Anonymous

Well, that presents a problem as I can’t just randomly send that in. I’m supposing they’ll send a request for it, and if this is want is necessary then it should have been placed on the insturctions. (not your fault, but the federal government is annoying!)

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avatar 218 Anonymous

Hi,
I was married and my ex- and I owned a home and were on title and mortgage together. Now I am remarried. Can my new wife qualify for the credit, as she has never owned a home before. Also can we qualify together, because as a couple, “we” have never owned a home before?
Also…. does the house have be fully purchased by Dec 01, or, can it still be in escrow? What if it is in escrow, and closes on Dec 3rd?

thanks!

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avatar 219 Anonymous

I’m afraid the news is not good with this answer. If you were on a title to a home, whether by yourself or with someone else, you do not qualify. Because you’ve remarried your new wife can not qualify either since as her husband you DID have an ownership interest in another home within the prior 3 years. Your new partner would qualify ONLY if she had not married you and could still qualify for a mortgage loan on her own. Yes it’s true. Had you simply moved in together and not gotten married until after SHE purchased a home she could have qualified. As to the escrow issue the answer again is no. The closing Settlement Statement can not be dated later than 12/01/09………unless Congress should decide to extend the offer. The economy will probably dictate whether this act is renewed or amended past 12/01/09.

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avatar 220 Anonymous
avatar 221 Anonymous

I’ve found generally that a local real estate broker (not just an agent) can tell you if there are any lenders located in your area who will allow that. The people who are really in the know on that subject though are the Mortgage Loan Originators who work for Mortgage Brokers or Mortgage Bankers. They have access to sometimes as many as 20 different lenders and programs where most banks’ mortgage loan departments only use 1 or 2 secondary markets. I know of no banks anywhere who’ll make an in house loan (meaning they intend to keep and service the loan themselves) and allow the Tax Credit to be used as all or part of your down payment. The Feds have really tightened down on the banks as to how creative they’re allowed to be anymore. I have heard there are a few lenders sprinkled across the country who will allow the Tax Credit to be used in that manner but I think they charge interest on the $8,000 until you actually receive the check which could be several months. There simply isn’t a lot of creative lending going on now for obvious reasons.

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avatar 222 Anonymous

I have a client who is purchasing a home from a trust that his grandprents were the trustees for. They never owned the property in their own name – it was purchased by the trust. Would the IRS consider this a family transfer?

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avatar 223 Anonymous

Technically, they never owned the property since it was held in the Trust’s name; however, I’m not a tax attorney and this is probably a question better suited for an expert.

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avatar 224 Anonymous

I have been reading through all the post and have not seen a clear conclusion, it may be that there is not a clear answer, but:

1. Can you file the amended tax return using Turbo Tax?
2. What is the ETA on refund arrival:
A. Direct deposit to an account
B. Certified mail

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avatar 225 Anonymous

I think the questions have been addressed over a period of several weeks but not all at one time.
1. While you may prepare your amended tax return (1040X) on Turbo Tax you CAN NOT file an amended return electroncially. You’ll need to complete the amended return, include form 5405 (claiming the tax credit) along with a copy of your Settlement Sheet proving you actually did purchase a home and then mail the entire package to Uncle Sam.
2. ETA has been 16 weeks and counting. I am no longer advising folks to file the amended return because of the huge backlog the IRS is trying to slog through. My advice now is to simply wait and file the 5405 form and copy of your Settlement Sheet along with your 2009 return because you CAN file that one electronically. The difference is that when you file electronically you’ll tend to get you refund (and $8,000 Tax Credit in this case) quickly, like within 3 weeks of filing. That doesn’t mean they might not have more questions about your return later but at least you’ll have the money quickly and (A) Yes, they’ll deposit it into your designated bank account right along with your refund if any. (B) While many people advise to send tax returns certified with a return receipt requested I’ve still seen them lose the returns and require the filer to prepare another one. The good thing about Turbo Tax combined with Electronic Filing (remember, I’m advising to wait now until you file your 2009 return) is that it only takes about 5 minutes to create another copy if you need it.

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avatar 226 Anonymous

Gary,
Thank for for that last response to someone, it made things much clearer… too bad I didn’t know this advise a couple months ago as I’ve already filed mine… But here is my problem when I sent in my amended return with the 1040x and the 5405 I did not see anywhere where I was asked to send in the settlement sheet. (I did this through turbo tax in May)… what will that mean for me? Will they contact me and tell me they need the additional documentation or should I attempt to contact them?

Thanks, Karen

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avatar 227 Anonymous

> The best thing you can do at this point is just be patient and wait for them to contact you. It seems most people who are contacting the IRS themselves right now are getting different answers to the same questions, depending on which IRS employee they speak with. As frustrating as it is, take heart in the fact that you will eventually get your check. Who knows? Maybe it’ll be just in time for Christmas!! I agree this stimulus check could help jump start our economy sooner if we could just get our hands on the promised money earlier.

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avatar 228 Anonymous

Just FYI to all of those who have already purchased and are filing for the $8,000 tax credit. If you send in your Form HUD-1, that you received when you closed on your house, with your 1040X and 5405 completed forms, your credit will arrive much quicker. If the IRS only receives the 1040x and 5405 forms, the purchase has to be verified manually before they can approve the refund, which definitely slows it down.

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avatar 229 Anonymous

Hello,

I am planning to buy the house that I am renting from my landlord. Do I qualify for the 8000 credit?.

I was reading the form and it says “ou sell the home, or it ceases to be your main home, before the end of 2008.”

Is not my house but is my main residence, I wonder if I still qualify for the credit?

Thanks in advance for your reply.

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avatar 230 Anonymous

Fansntt,
You are very observant; however, keep in mind this form was originally a 2008 edition and the IRS was in such a hurry to get this form updated that they finally decided to use a hybrid version. That’s why some of the info refers to homes purchased in 2008 but most of the form refers to homes purchased in 2009. The quote you refer to on page 1 was supposed to be removed from the form before it was released for print. The very latest editions do not refer to that “cease to occupy before the end of 2008” nonsense. If you’ll scan on down to page 2, you’ll find this verbiage for those who purchased or intend to purchase in 2009 (current deadline to purchase is 12/01/09). It states “If you cease to own or otherwise sell this primary residence within 36 months of the date you acquire it you will be responsible to repay all the money you received as a Tax Credit”. Your form may read slightly different but I’m quoting from the latest revision to form 5405. Now, as to purchasing the home you reside in from your landlord the IRS draws no line against that as long as your landlord is not also an immediate family member. Even if you leased the house with an option to buy, the only date that matters is the closing date when the home becomes officially yours as the new owner. Don’t forget to attach the HUD-1 form, also referred to by many as the Settlement Sheet. It’s a legal size form and accounts for all the debits and credits involved with the transaction such as earnest money deposit, prepaid taxes and escrow amounts for future insurance premiums, etc. etc. etc. I hope this helps.

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avatar 231 Anonymous

Thanks Gary!.. that was very helpful… Very confusing IRS forms tho.

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avatar 232 Anonymous

I’ve read through the questions and realize mine is very similar to many already asked, so I apologize for asking it again, but I think it’s a tad different – here goes: I own a home, my fiance does not and qualifies as a fhb. If we marry and he (not me) buys a house (my name will not be on the deed), will he still qualify for the $8k tax credit? Thanks so much for responding!

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avatar 233 Anonymous

I think I found my answer on the form 5405 – if we’re married and I’m not on the mortgage, he would only get half of the $8K… If this is incorrect, would someone reply? Thanks again!

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avatar 234 Anonymous

Steph,
You did find the correct answer………technically. If you can figure out how to postpone your marriage until after he closes on a house, he can claim the entire $8,000. If you marry first and then he purchases a home, he gets only half. Kind of a marriage penalty. I’m not giving tax advice here but if your plans won’t allow you to change your wedding date some couples have chosen not to file joint returns for 2009 and instead wait until the year AFTER they get married to file jointly. Remember though if you should choose to continue fililng separate 1040 forms as single people you should also not claim each other as exemptions for 2009. A cross check would match up Social Security numbers and you’d risk losing even the $4,000.

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avatar 235 Anonymous

Thanks Gary! It’s funny to think that we’re getting paid by the government to not get married…

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avatar 236 Anonymous

Hi a quick question… maybe someone can suggest some alternatives for my brother and I…

We would like to buy a home and qualify for the $8K credit…However our credit/income situation is a little unique and banks obviously are not into “unique” anymore!!

I have a credit score of 802…However, I am an independent IT consultant and my income is not as ‘documentable’ as banks would like! (About 30K yr for the last 5 yrs)

My brother’s credit stinks… and in fact he does’nt have a credit score…due to some health related obligations he was unable to pay he is considering a bankruptcy filing to clear those debts so as to rebuild his credit in the future. What he does have though is a guaranteed monthly income from SSN/Disability and State Workman’s compensation of $3000 per month until he dies…I will also qualify for SSN in 4+ years for about $1600 a month…

What we want to do is buy a small house or condo as our primary residence… hopefully using/combining his guaranteed income…my somewhat documented (last 3 years IRS) income and my excellent credit rating…We both have zero outstanding debt (or in my brothers case will have shortly)…

We would put mortgage insurance on the house to pay it off in the event of either of us passing (either via the loan or life insurance policies)…with the intent that whomever stands last has somewhere paid for to live…

It seems that our plan is a little more difficult to put into place that we thought…Originally the plan was to buy FHA and go…but they wont use my superb credit combined with my brothers guaranteed income to generate financing! (He has no crdit score and since he will file bancruptcy shortly wont have one for awhile) Land contacts and lease options are an option , but we then lose the $8k stimulus funding…As usual these so called government help plans for the little guy have catch 22s all over the place…

As a pair we would represent excellent credit (mime) and no-risk income (his) now to pay a loan…In 4 years we would add my $1600 SSN to the guaranteed income stream…We want to buy now to take advantage of the low rates and $8K stimulus..is there any way you can suggest we might get financing to buy??

thx

gary

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avatar 237 Anonymous

Please don’t be offended but where you see your good credit and your brother’s guaranteed income, a lender sees his bad credit and your “so so” documented irregular income. In today’s lending climate the rule of thumb is pretty much no bad credit accepted and 20% down payment is preferred. Actually, this is exactly what home lending used to look like 20 to 30 years ago. Regulators are jumping all over lenders who try to put together “creative” financing arrangements. Your brother is just pretty much out of the market unless as you say, you can find a seller willing to finance the sale individually or lease w/option to buy. You can probably qualify for a mortgage on your own although it may not be for as much money as your preferred house costs. As far as future income is concerned the lender will not even take that into consideration in the present environment. Documented history is the only thing they’ll consider. Good luck, it’s going to be tough to qualify for any Tax Credit on your proposed method of puchasing/financing.

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avatar 238 Anonymous

Thanks for the response…I’ve pretty much come to the same conclusion…just wanted to bounce it off someone to make sure I wasnt overlooking anything! I have done a successfull land contract in the past…looks like another is required now!!

thx

gary

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avatar 239 Anonymous

Definitely have an attorney draw up the paperwork on a land contract to be sure you comply with ALL the conditions. Many contracts do NOT cover all the bases mentioned on the IRS web site.

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avatar 240 Anonymous

Gary,
Since you and your brother only want to buy a “small house or condo”, why not see how much loan YOU could qualify for alone – and then try everyway possible to put the rest as a down payment (current savings, you and bro saving every penny between now and closing, borrowing from relatives, etc….). I assume your brother is currently living with you in an apartment…if not, he should be and should be saving MOST of his 3,000/mo for his/your home purchase. For example, if YOU alone could qualify for a 50,000 loan and you+bro could scratch together 30,000 between now and Nov 30, you could buy a small condo for 80,000 (in many parts of the midwest/south anyway) and still get the 8,000 credit – all to you. You will also not have to pay the expensive Mortgage Insurance since you will have >20% down. To Gary’s point about lenders though, if you are looking to buy a 200,000 house/condo, you are out of luck, because you simply don’t qualify and shouldn’t be buying anyway.

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avatar 241 Anonymous

FYI…found this Q&A on the IRS website…

Q. Can a taxpayer claim the first-time homebuyer credit if the purchase is pursuant to a seller financing arrangement (for example, a contract for deed, installment land sale contract, or long-term land contract), and the seller retains legal title to secure the taxpayer’s payment obligations?

A. If the taxpayer obtains the “benefits and burdens” of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property. (New 7/2/09

Carolyn

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avatar 242 Anonymous

So does this mean that LAND CONTRACTS/CONTRACTS to DEED and LEASE TO BUY …qctually do qualify?? Can this be sonfirmed Y/N??

thx

gary

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avatar 243 Anonymous

I filed 2008’s taxes in March 2009.

My AGI was over $95,000.

I purchased a home May 1, 2009.

This year my AGI will be $75,000.

Do I file a 1040X with 5405 and ammend last years return, or do I wait until January/Feb 2010 and file at that point?

Will I get $0 if I do the ammendment? ($95K AGI rule)

Thanks,

Chris

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avatar 244 Anonymous

Chris,
Yes…to filing next year for your 2009 taxes. You do not qualify if you file on your 2008 taxes (you made too much). You will get $0 if you file an amended 2008 return.

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avatar 245 Anonymous

irs sent me a letter saying they need my settlement papers in order to mail my credit. i have waited 120 days(16 weeks) now i must wait longer. does anyone know how long the wait after you send irs settlement papers. i faxed this to speed up the process.l

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avatar 246 Anonymous

I am having a real problem figuring this out (duh) – I am going to buy a house this month for $106,000 – do I get 10% of that, or $8000???? I earn less than 30,000 a year. HELP??

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avatar 247 Anonymous

My husband & I have not owned a personal home for 3 1/2 years. But, we built & sold a house in 2007. We never lived in the house & there was no motgage in our name, just the builders loan was in our name. Do we still qualify for the $8000 credit?

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avatar 248 Anonymous

My husband and I purchased a town home about 5 years ago for our son and took out a kiddie condo loan and his name is on the deed. We are totally responsible for the loan and claim everything on our tax return. He has never made any claims on his tax return for the mortgage interest or anything dealing with the property of any sort and is now interested in purchasing a home. Would he qualify for the $8,000.00.

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avatar 249 Anonymous

I purchased a home this year in March and i still havent filed for the Home buyers Tax credit can i wait until i file for my taxes next year to claim it or do i have a deadline? and also i had a baby in March also and im currently not claiming her as a dependant can i eait until i file my taxes next year?

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avatar 250 Anonymous

Is it correct that you don’t qualify for the 8,000.00, if you purchase a home from a relative. My parents are retired and moved, my fiancee and i are renting the home and would like to buy the home from my parents but some one told us we couldn’t qualify for the credit. Can you explain?

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avatar 251 Anonymous

Joan,
Correct, YOU can NOT buy from your parents and still qualify…however, your FIANCE can – assuming he meets all the other qualifications of FTB, Income limits, etc… Just make sure that your “FIANCE” buys it and in his name only…if you get married before the purchase, then all bets are OFF as he will then be your husband and he will no longer qualify (weird but true). Hope this helps…you are in better shape than newlyweds!

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avatar 252 Anonymous

Hi To qualify for the $8000 credit, do you have to close escrow by Nov. 30, 2009? Or do you just have to be in escrow and can you close after Nov. 30, 2009?

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avatar 253 Anonymous

HI. i bought a house on 03 /10 /09 and i paid cash for it.. do i qualify for the $8000 …

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avatar 254 Anonymous

Javier,
Paying cash doesn’t matter, so you WILL qualify given you meet the other criteria…income, not buying from a relative, occupancy date, etc… To be clear, the 8000 tax credit is for “Buying a home”, not for taking out a loan!

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avatar 255 Anonymous

I recently purchased a house and filed the ammendment for my 2008 tax return so I could recieve the tax credit now as apposed to later. I filled it out with the closing date which at that time was in the future. The IRS sent it back saying we needed to be owners of the house before we could apply for the credit. I have since sent in a new form with the correct date and own the house. Should this cause much of a problem in recieving my tax credit?

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avatar 256 Anonymous

If I recieved my tax return direct deposit, is the FTHB Credit going to be deposited electronically or mailed via paper check? Also, if it was mailed paper check, and on my amended return, i selected not to update address with IRS, will they then (if mailing paper) send it to the address that was listed on my original return, or automatically send it to the FTHB address that is listed? Thanks.

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avatar 257 Anonymous

I have the same question as Antonio. I am closing on my house in two days and mailing in the 1040x and 5405 the same day. I originally got my tax return direct deposited to my bank account. However I recently closed that bank account. I am wondering if my FTHB credit will get direct deposited as well just because my initial tax refund was direct deposit? Or will it come by check?

Thanks

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avatar 258 Anonymous

Okay, somebody help me PLEASE!
We purchased a new home in August of 2008. We did not claim the First Time Buyer Credit on our taxes for 2008. Now it is 2009 and we want the credit. Do I have to amend my 2008 taxes?? Or can I claim the credit on my 2009 taxes?? This is so stressful! Somebody just give me $7500 PLEASE! : )

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avatar 259 Anonymous

update it took 16 weeks for irs to get my return to processing. then they needed closing papers 2 weeks later (18 weeks) they said they would get back to me. 2 weeks later (20 weeks) 2 weeks later(22 weeks) i get letter saying i will get my 8000 credit and interest . today oct 5 i finally get my check. total wait 5 months 20 days. i will pray for everyone else to get their credit soon.

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avatar 260 Anonymous

My question is I bought a house in 2001. My wife was not working at that time and I was the only income used to secure the loan. I think my wife is on the Deed. We just bought another home a few months ago using my wife as the primary, I am on the loan also. Would my wife qualify for the tax credit?

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avatar 261 Anonymous

I closed on my home a month ago and don’t know what steps to take to get my tax credit.

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avatar 262 Anonymous

Trying to get everything filled out to amend my taxes.

Do I need to fill out anything in Part I of 1040x? Page 4 of the instructions say “If you are providing only additional information and not changing amounts you originally reported, skip lines 1 – 33 and complete Part II and, if applicable, Part III.”

Do I send only the 1040x and 5405 forms, or is there anything else I need to include?

Thanks.

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avatar 263 Anonymous

I’ve filed for an amendment for the 2008 Fed tax return but I was wondering 2 things about state:
– Does Oregon offer additional tax credit for first-time homebuyer?
– Do we have to do an amendment to our state tax return as well as the fed’s?
Thanks for your help in advance

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avatar 264 Anonymous

There must be a new law are something. I have heard people say that they efiled last month for the first time home buyers credit. They received some form of debit card in the mail and a week later they were issued there 8000.00 tax credit the debit card sent to them from IRS. Is this true? Where I work at many people have been using this so call IRS issued debit card for the tax credit. have you heard of this?

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avatar 265 Anonymous

I bought my house in 2008 and did not even know about the $7500 loan amount. Is it possible for me to file for that on my 2009 taxes? I know I have to repay it over 15 years and it does seem unfair to me that those that purchased in 2009 don’t, but anything will help at this point.

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avatar 266 Anonymous

If the deadline for the $8000 credit is November 31, when is the last day to file paperwork in order to qualify? Does the home have to close escrow before than or does it just have to be in process?

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avatar 267 Anonymous

Amanda,
You can still amend your 2008 Tax Return any time and claim the $7500 loan amount,which however you need repay back.

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avatar 268 Anonymous

The 7500 you will have to payback. If you bought the house in 2009, the 8000 is a US tax payers gift to you with no payback

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avatar 269 Anonymous

what if your unemployed am I still Eligible for the 8,000?

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avatar 270 Anonymous

we are building a beach house on the land we have owned for 16 yrs.it will be complete around the end of nov/beginning of december. our house was destroyed in ike, we have not bought a house in the past 3 years, live overseas, and would only use this new house approx. 2 months every year.. would we qualify for a credit?

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avatar 271 Anonymous

we are building a beach house on the land we have owned for 16 yrs.it will be complete around the end of nov/beginning of december. our house was destroyed in ike, we have not bought a house in the past 3 years, live overseas, and would only use this new house approx. 2 months every year.. would we qualify for a credit?

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avatar 272 Anonymous

i purchased a house on 5/29/09 (closed date). i filed for amended tax for the $8000 credit. they said they recieved it on 6/12/09. here it is 11/10/09 and still haven't recieved it. i s/w someone and they said they didn't know why i haven't recieved it yet. she said she would contact the processing center. what could be the problem? i was a day late last month, i hope that wasn't it.

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avatar 273 Anonymous

If you only use it two months of each year, it is not your primary residence. You would need to live there most of the time for 3 years to qualify. I don't know what the cutoff is, but it would have to be more than half the time at least.

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avatar 274 Anonymous

If you only use it two months of each year, it is not your primary residence. You would need to live there most of the time for 3 years to qualify. I don't know what the cutoff is, but it would have to be more than half the time at least.

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avatar 275 Anonymous

If I were to close on my own home Jan 2010, am I able to file an amended 2009 tax form to get the credit now (in 2010), oppose to waiting til 2011 to file?

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avatar 276 Anonymous

TRYING TO BUY THE HOUSE WE HAVE RENTED FOR 8YRS BEFORE THE NOV. DEADLINE BUT IT WILL BE OWNER FINANCE. DO I QUALIFY AND WHAT ARE THE STEPS

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avatar 277 Anonymous

Here is a questions i have asked the IRS, and cannot get a real answer. My boyfriend purchased a home in June 2009, he is a first time home buyer. He is the only person on the deed. We planned to get marriend next month December, but we are worried that he may not get the credit if we do get married. I have never been a homeowner, so i think we should be fine. My question is do you have to be married at the time of purchase the home to qulify? Or can you get married before the year ends, and file the taxes Married filing jointly and still quilify for the credit? We are confused and are not sure what to do. My boyfriend will have an income of close to 90k at the end of this year, if we get married our combined income will be less than 150k. Asked the IRS about this and they could not answer my questions. Did we have to be married at the time of the purchase?? any help will be greatly appreciated :)

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avatar 278 Anonymous

if i buy a house, between 12-29-09 and 1-14-09 and i qualify for the 8000 tax credit can i claim it on my 2009 tax return?. they are the dates of settlement.

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avatar 279 Anonymous

We are purchasing a home from my husbands parents. we were told that we would not be able to qualify for the tax credit because we purchased a house from a family member. Is this true?

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avatar 280 Anonymous

we just closed on our first house the last week of nov.now how do i get my credit?anyone who can offer help? please thank you

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avatar 281 Anonymous

The actual credit you will receive is 10% of the purchase price of the home or $8,000, whichever amount is lower, so we DON’T get the full $8000 as I was lead to believe by my realtor AND mortgage officer. DECEPTION at its finest…

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avatar 282 Anonymous

I have a question: I am really trying to see If me and my husband are eligible.
I own a home with my parents.
But one of the rule is that you must not have not own a house in the past three years from your new purchased.
Well, I no longer lived in my parents home 2 years and 7 months from the purchased of my new home which took place in nov 2008. According to this sentence in the form 5405- I am not eligible. But does this mean that my spouse can qualify, since he has never own a home. But I do understand that by marrying me, the house became part his??? Gosh I am so confused.
I try claming it last year but I got too stressed in thinking the govt’ was not going to approved us due to all these confusion or they would come back for their money and charge us interest.
help!!! advise!!!

If You (and your spouse if married) did not own any other
main home during the 3-year period ending on the date of
purchase.

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avatar 283 Anonymous

So when you do your 2009 taxes, do you have to claim the $8000 as “income”?

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avatar 284 Anonymous

I am closing on the first week of January will i still be able to get the 8000 for this tax return if i hold off and file in February?

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avatar 285 Anonymous

they say that you have to send in proof of buying the home for tax credit …….i have 1000 of paper vwork from purchase ….which one is proof

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avatar 286 Anonymous

I still have not received my house tax credit from amending my 08 return. Could I just call the IRS and cancel the claim, so as to somehow claim it on my 09 instead? I didn’t think it would take so long to get it, but if I efile, I can get it the 1st-2nd week in February.

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avatar 287 Anonymous

I bought a house March 2007 am I qulify for this credi first time buyer

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avatar 288 Anonymous

QUESTION:
I PURCHASED MY FIRST HOME IN JUNE 09. I TRIED TO AMEND MY 08 TAXES TO GET MY TAX CREDIT BUT MY INCOME WAS OVER THE LIMIT. NOW THIS YEAR MY INCOME IS LOWER. CAN I FILE FOR THIS TAX CREDIT AGAIN ON THIS YEARS TAXES?

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avatar 289 Anonymous

me and my husband closed on or first home sep. 30 2008, and we didn’t claim the house last year . which rebate would we get?

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avatar 290 Anonymous

I purchased a home in Aug 2009. I have heard two different things in regards to filing form 5405.
1) If you purchased before Nov 2009, you can e-file and do not need to send in a copy of the settlement statement.
2) You must file a paper copy of your tax return with a copy of your settlement statement.

Does anyone know which is correct?

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avatar 291 Anonymous

I have seen and heard on various websites that the definition for first time homebuyer “may” include “displaced homemaker” and or “single parent” if they owned the previously owned home (with-in the 3 year period), with a former spouse. IRS.GOV has no language what so ever for this “clause”. This language is specifically referenced as being included within the “first-time homebuyer” definition through HUD, in Chapter 3 “miscellaneous policies”. That is the only place I have found this exception to the “legal” definition. Can you shed some light on this mystery, as all of the sites I’ve visited thus far, have failed to clarify or provide any information for me to be able to substantiate that this “clause” even exists. Being HUD and IRS are both government entities, would they be obliged to share the same legal definitions??? THank you in advance for your anticipated reponse

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avatar 292 Anonymous

My husband and I are first time home buyers and are told we cannot qualify for the tax credit because we purchased this from MY parents but through a living trust.
Is there not a provision for those of us who have purchased this way???……..I dont understand why we dont qualify………..we have lived in this house 10 yrs and finally decided to purchase it and feel left out and cheated. Is there something we need to do in order to take advantage of this program. We are retired military and moved around for 27 years and never bought before because of that……any loophole I should be looking for????

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avatar 293 Anonymous

Is it possible to qualify for the $8000 tax credit if you find a home after the specified date of April 30,2010?

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avatar 294 Anonymous

My understanding is that you must be in contract (Seller accepted your bid, and you’ve signed something.) prior to May 01, 2010. Hope this helps.

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avatar 295 Anonymous

I want to file my taxes now, but have not yet found a home. I have been spoiled by H&R Block Online, and would prefer to do as I have in the past. I’ve filed electronically and have received my refund within weeks. Does anyone know if I’m able to claim the Home Credit after the fact for this year 2010? Meaning… I would like to mail in JUST for the Home Tax Credit once we’ve found a home, and do my taxes electronically now as I’ve done in the past.

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avatar 296 Luke Landes

You can e-file now, and file an amended return (through snail mail) later. There’s a deadline to qualify for the credit, though, unless Congress extends it again. Here’s the info for claiming the credit with your 2009 returns.

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avatar 297 Anonymous

Awesome Flexo! So again, the fate of my returns will lie on your knowledge. I can do as I’ve always done (e-file with H&R Block online,) and then find my home, and send off the 5405? The expect payment electronically for my “regular” taxes, and then a check for the home tax credit? If so, and I hope it is…. YES!!!!!!!! I need some money now, and don’t want to wait to find a house to file. I appreciate your help and time.

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avatar 298 Luke Landes

You’ll have to do more than send off a 5405, you’ll have to file an amended 1040X. And I expect it could be a while before you receive your home buyer credit from the IRS. But otherwise, it sounds like you got it. If you have any questions, you should check with a tax professional.

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avatar 299 Anonymous

Last question, promise. If I buy the home in 2010, can I still file for the credit on my 2009 taxes? Oh, and sorry for all the grammatical errors. I’ve had a few :)

avatar 300 Luke Landes

If you buy your house in 2010, you can still claim the credit on your 2009 taxes, but your purchase needs to be before the credit expires.The details are here.

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avatar 301 Anonymous

Hello! A few questions if I may….My husband and I purchased our first home on November 5th, 2009…The day before they changed the rules about efiling I have learned. I spent 8 hours doing our taxes yesterday, and right when I went to efile, TurboTax tells me, Sorry you cant…Oh the frustration! My question about paper-filing is, how long does this take??? If I mail it out and choose direct deposit could it still take 4 months???I read that somewhere. The next question relates to our method of purchase…We bought by a “land contract”, otherwise known as seller-financing..The IRS has confirmed that this is acceptable for the credit, but I can not find anywhere what I should include with my form 5405. I have a memo of the realestate contract(in recoradable short form), and I also have the actual 10 page contract…I have records showing we applied for and received the homestead exemption, and I also have something from the auditor with the sale information. When we filed our papers in the courthouse, we had to fill out a sales disclosure…That has all the good information on it. I wonder if I could get a copy of that…Any advice would be greatly appreciated!
(We chose the land contract becasue the seller gave us a great interest rate, and we can have the home paid off wihtin 10 years-just in case you were wondering:)
Oh! sorry, 1 more thing. Do I also need to include copies of the reciepts for the energy-efficient windows we purchased in December on the 5695 form???

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avatar 302 Anonymous

My husband & I have not owned a personal home for 4 years. But, we built & sold a speck house in 2007. We never lived in the house & there was no motgage in our name, just the builders loan was in our name. We built our personal house & closed in January 2010. Do we still qualify for the $8000 credit?

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avatar 303 Anonymous

My wife and i were just purchased a house in late October of 2009. Unfortunately due to lack of employment and unforseen circumstances, and in order to get a decent rate I had to get my father to get the loan for us.
We signed some documents that said we were on the mortgage. ( From what i undertand, that is different from the loan) Does that just meen we are financially responsible for the payments?
My wife and I are both on the Deed, and neither of us have ever owned a home before.
I have read mixed answers about whether or not we qualify for this $8000 tax credit.
My buddy works for the IRS, and he said he was pretty sure we would, since it was our first home.
Do we qualify or not?

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avatar 304 Anonymous

Do we qualify?

My husband and I bought a home in May 2009. I have not owned a home for three years. My husband, however, is a different story. He was moved out of his house in April 2006 and then divorced in July 2006….his x-wife got the house.

Can we still claim the credit?

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avatar 305 Anonymous

Hello quick question do i still qualify for the first time homebuyer credit for 2008 if i closed on my home in 02/2008 ?? I find it very confusing, first off it says: this applies only if you purchased your home 4/30/08, but in a different area it states if u purchased your home and have not lived in it for about three years?? does this even apply to me and my wife, hence the word ‘first time home buyer credit ?? can someone please clarify this for me ??

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avatar 306 Anonymous

I built a house (my first home) starting in 2008 – I closed on the loan in Dec. of 2008 but did not move into the house until 2009. Do I qualify for the 8000.00 rebate?

Thanks, Skyler

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avatar 307 Anonymous

My son is buying his first time home March 12 2010. He is getting 5000 back before the 8000 tax rebate. He wants to send his tax in now get the 5000 back (maybe by efile). Then he wants me to amend his tax in March after his purchase. He does already have a signed contract to purchase with dates the and price. I’m afraid this might cause problems and long delays. I prefer him to wait to March and file it all. Do for see any problems or long delays with his 8000 rebate by amending it in March?

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avatar 308 Anonymous

My husband and I bought our first home in August of 2009, expecting to receive the first-time homebuyer credit. We purchased our home from his mother, who has retired and has moved. Is it true that because we purchased the home from a relative, we don’t qualify for the $8000 tax credit? Is there anyway to get around it?
Thanks!

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avatar 309 Anonymous

I filed for the return with my 2008 taxes and purchased my house in July 2008. I am filing my 2009 taxes…. Do I need to report this as income, or something? Do I need to pay taxes on this?

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avatar 310 Anonymous

I bought a home on 11/06/09 my income is over the limit to receive the 8k credit for a single person. I was married on 11/14/09 but my wife was not involved in the purchase of our home. If we file jointly, do we qualify for the 8k credit since our joint income does not exceed the limit?

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avatar 311 Anonymous

I purchased & closed on my home of my own accord on 9/4/09. I qualify for the tax credit as I have never owned a home before. However, I got married on 10/10/09 to a man who has owned a house in the last 36 months. Does HIS past disqualify ME even though I purchased the home before we got married?

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avatar 312 Anonymous

You can still amend you 2008 tax return for this credit. If you amend your taxes for that year you should be able to get the credit bc you weren’t married then.

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avatar 313 Anonymous

Kerry,
I’ve ready several places that eligibility for the tax credit is determined at the time of purchase.

but I’m in sort of the same situation:
I do not qualify for the tax credit, in Oct 2009 my fiance and I bought a home together. she does qualify. in Nov 2009 we got married. i found this to show that she can in fact claim the full tax credit:
http://www.irs.gov/newsroom/article/0,,id=206294,00.html

what i haven’t been able to figure out is if i can file “married filing jointly” or not.

anybody know???

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avatar 314 Anonymous

My salary is 120,000 dollars. However, if I do overtime which is probably the case, it can go up to 130,000. If I buy the house in april this year, Can i file for the 8000 dollars this year or I will have to wait for next year? And do they consider my base salary when determining my eligibility or they take into account my overtime?

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avatar 315 Anonymous

My husband owe the goverment for an overpayment but arrangrments was made and he being keepin since he start paying back. will they take the balance from the 8,000 credit or will they just leave him alone since he’s not in default.

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avatar 316 Anonymous

My husband and I signed a land contract in February 2008. So this means we can’t get the $7500 tax credit? Besides getting a mortgage before April 31st, is there any way to get this tax credit? Redoing the land contract or renewing it wouldn’t help us to receive the credit, would it?

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avatar 317 Anonymous

Hi, Here’s what I have. I live in Maui,Hawaii and I’m renting. I just bought a home in Dahlonega, Ga.I will be closing on it March 5,2010. My wifes is an editor for a wedding magazine here in Maui but will be able to do her job online from Dahlonega, Ga. I have a commit here where I can’t leave. Our new home loan is based on our Maui income. I guess here is the question. Can my wife live in the new home full time still working for her Maui employer and myself live in Maui and still get the $8,000.00 tax credit? Hope I made sense Thanks in advance.

Thom Search

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avatar 318 Anonymous

Wanted to know three things

1) Can I use this tax credit towards the downpayment and if so how do I go about doing this

2) If I am default on a student loan can they seize this tax credit or is this considered something different.

3) If I buy the house in my name can I have a check payable to my corporation instead of myself
My taxes are filed under the corporation and I am considered an employee.

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avatar 319 Anonymous

My husband & I have not owned a personal home for 4 years. But, we built & sold a speck house in 2007. We never lived in the house & there was no motgage in our name, just the builders loan was in our name. We built our personal house & closed in January 2010. Do we still qualify for the $8000 credit?
Any info would be greatly appreciated!!

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avatar 320 Anonymous

Hi,
I purchased a home in July of 2005. I recently purchased a new home on December 2009. I have not sold my old home yet. Do I qualify for the existing Home Buyer Tax Credit?

Thanks,
V

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avatar 321 Anonymous

Very comprehensive set of instructions. The IRS should refer people here. Also, found that the software packages for tax filing did a pretty decent job of walking one through claiming the credit.

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avatar 322 Anonymous

My ex wife and I were divorced Feb 19. In June 2009 she signed a quit caim deed and I refinanced the house we had previously lived in for 12 years in my name only and gave her half the equity. Now that we are divorced is it legal to sell her the house and for her to claim the $6500 tax credit??? Please don’t respond if you are just guessing. Thank you

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avatar 323 Anonymous

What if I buy a house in 2010 (before the deadline of April 30) – can I still claim it on my 2009 taxes>

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avatar 324 Anonymous

Read the answer for “Flexo” posted Jan 25, 2010.

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avatar 325 Anonymous

So my situation is as follows: I purchased the home which I had grown up in in April of 2009 from my mother. I have taken out a mortgage and paid $180,000 for the home. I have all the proper documentation from the bank. Unfortunately it seems that even though this was a legal and on the up and up purchase that I cannot claim the credit. Any advice as to whether or not I can claim the credit? I’m beyond frustrated as this was not a gift, and I have taken this on as my own main residence now with a thirty year mortgage. Any advice would be appreciated.

Thank you

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avatar 326 Anonymous

I have a question about proof of ownership for this credit. Does my wife’s name have to be on the mortgage too? Due to a better rate, I got the mortgage only in my name. But both my wife and I are listed on the HUD-1 settlement form and we have been filing taxes jointly ever since we got married.

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avatar 327 Anonymous

I am really having a hard time trying to understand how to claim first time home buyer credit for myself and my parents..I along with my parents bought a home in 2009, my parents file jointly and I file my own taxes, now my question is do we split the credit into 50-50 between them and me? While filling this is what “percent allocation help tab” explains – any percentage of the credit can be allocated to a partial owner as long as owner is eligible. If you are partial owner of a residence you could allocate up to 100% of the credit to yourself. You could also allocate up to 100% of the credit to any one of the partial owners. Can someone one help me interpret this better?

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avatar 328 Anonymous

My wife and I purchased a $200,000 home on Jan 7th, 2009. I did my taxes as soon as my W-2 was posted and filed before January 2009 was over. At the time I qualified for the 7500.00 payback credit under the 2008 extention of the original law. The law changed in late February to the 8000.00 no-payback credit for homes purchased in 2009,which I technically also fall under, can I ammend my return for 2008 or add a form to my 2009 return to change my credit and get my $500.00 and not pay it back?

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avatar 329 Anonymous

My apologies if this question has already been answered. I received my $8000 tax credit already. I saw one of the requirements of accepting the credit was that you would remain in the home for 3 years or you would have to pay it back.

Can I rent the house to someone if I need to move within the 3 years? Any other tricks or special conditions that would make me exempt from having to repay the $8000?

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avatar 330 Anonymous

I purchaced my home december 31, 2008 is there any way possible i can be qualify for the 8,000 tax credit?

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avatar 331 Anonymous

Our situation is that my husband and I lived in my Grandfather’s coop that we didn’t buy but had to be in my name only in order that we could live there by the cooperative’s standards. We knew when we moved we’d have to sell the coop and give the money to my Grandfather. We vacated the premises August 2006, still paying only maintenance. Sold in June 2008. We paid only maintenance while living there and until it was sold. When it was sold, I gave proceeds of sale back to Grandfather’s estate, since we never really owned it or bought it. My husband wants to buy a house and was not the coop share stock or any of the records. He is getting the mortgage on his own and will be only one on titile. He will close by the end of April 2010. Can he claim the $8000 or even half of it, even though he’s married to me and my name was on the coop even though I didn’t own it, only in writing? Thanks for any advice to this sticky situation.

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avatar 332 Anonymous

My question is I purchased my home in September of 2006 but refinance my mortgage in November 2009. I had an adjustable rate and now have a fixed rate. Do I qualify for the credit?

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avatar 333 Anonymous

My husband and I have filed for a divorce, I am buying a new home of my own and qualify for the $8000. If I file my 2009 tax return with him will I loose the credit because he owns a house? The house is in his name only and was his before we married. If I file alone, I take a big hit because I’m filing Married filing separate. I do not want to loose my $8000 but I don’t want to pay in either! Help!

Kathy

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avatar 334 Anonymous

I bought land in another state, Missouri in 2006 – 2007 as an investment. I was sent a 1098 Form from the seller as I only had a “Contract for deed” in 2007 and did my taxes using turbotax. the land was vacant and undeveloped, there was never a home on it. When I bought my first home in 2009 in California I applied for the first time home buyer’s credit. But I found out I was denied because of the Form 1098 in 2007 taxes. I have since lost the land to theft, but I never declared this my primary address. how can I prove to the IRS this is just a misunderstanding?

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avatar 335 Anonymous

Can I apply for my own first time buyer tax credit? Or must I have H&R block do it?

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avatar 336 Anonymous

Visit all the complaint sites online. Thousands who legally and legitimatly became first time homebuyers in 2009, are still fighting long months, somew ill figh the IRS for a full year or two, to get the refund promised by the FED.The FED doesn’t have the money. Caveat emptor. Beware, with the more open license the FED gave the IRS this Spring the IRS can deny any rebate for any reason or construct that reason from interpretation of their own internal rules not known to the public.

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avatar 337 Anonymous

I have a question regarding the first time homebuyers credit and would appreciate any help I can get. My husband and I bought/closed on a home on December 17, 2009. Because of bad credit, my father-in-law co-signed the loan for us. The warranty deed along with tax appraisal district show us as 100% ownership, with my father-in-law not being even listed. However, the HUD-1 statement does list him because he co-signed for the loan. My father-in-law does not qualify for the first time home buyers credit. When I sent in the 5405, I provided copies of the HUD-1 as required along with the warranty deed. I was just informed that the return has been placed in review and I am panicking, could the co-signer knock us out of the credit? Thanks in advanced for any help.

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avatar 338 Anonymous

Could someone please help me? I am filing my 1040x and the amount on line 20 is equalling $7,833 ($167.00) less than the 8,000…however $167 is on my line 8 and 9 of the revised 1040x I am not sure what I am doing wrong…I think I have calculated wrong but I just dont know…I would appreciate any help…I am using my 2009 tax returns I filed 1040….Any help would be great..

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avatar 339 Anonymous

I thought I qualified for the $8000 credit, but now I’m not sure. I was married to a man who owned a house before we married. Our divorce was final 06/24/2010 and I bought my own home. I filed a extension on my 2009 taxes so I could include the $8000. But I read that if you file “married filing seperate, you wouldn’t qualify. Should I wait and file the credit on my 2010 taxes or does it make a difference? Do I qualify?

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avatar 340 Anonymous

Flexo
What if a person has a criminal history??
Can they claim the $8000 tax credit???
There are 2 simple assault charges.

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avatar 341 Anonymous

i have a question, me and my husband is a new home buyer home, we bought a house lastyear july 13, 2010 and we heard that they extendent the 8000 credit, and my husband also is a us army, are we qualify for the 8000 credit?? thnx…

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avatar 342 Anonymous

Bought a home in Oct 2009. Qualified for 8K tax credit. However, we will be having our third child in October of this year and need to upsize. Will we have to pay the 8K back immediately or over the next 15 years?

Thanks for any advice you can provide!

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avatar 343 Anonymous

Trey,
Figure out some way to stay in that house long enough to satisfy the 3 year rule. If you sell the home, you must repay the entire $8,000 in the year you sell it. While it may cramp your style for a while, selling the house within the 36 months following the purchase carries too much of a penalty not to stick it out. I know a couple who had a similar situation and they went ahead and purchased another home. They rented out the house they received the $8,000 credit on and thought they’d slid by but when the husband applied for a student loan last month he was denied. The IRS figured out what he’d done by simply matching up social security numbers on the 1098 (mortgage interest paid) forms. He is now facing fraud charges plus being ineligible for any student loans from the government for at least the next 5 years or until he repays the $8,000, whichever occurs first. It’s just not worth it to try an end run around the rules. Your reference to paying it back over the next 15 years dates back to an earlier program where the maximum credit was $7,500 and it had to be paid back at $500 per year regardless of the circumstances. In other words that program was a loan and not a tax credit. I hope this helps.

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avatar 344 Anonymous

Gary,
Your post in response to Trey’s question provided a lot of useful information for me, however, I did want to ask you something, regarding my particular case.
I purchased my home July 2009, in my name. I now am engaged and seeking to relocate to another state to be with my soon-to-be husband, therefor I am looking to rent out my home. I do know that I will be, when doing so, entitled to repay the IRS for the $8,000.00 credit… My question is, do they allow you to make payments? I am terrified to put myself in a position where I am slapped with a bill of $8,000.00 due immediately, because I simply do not have this kind of money. I am a single mother, looking to be with the one I love… kind of tough situation for me right now…

Please provide any helpful information.
Thank you,
Kelli

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avatar 345 Anonymous

What did you find out about having to pay back the 8000? How long do you have to live there before you don’t owe?

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avatar 346 Anonymous

I co -signed for a friend to buy an house in october, 2009. Will i be able to get my share from the $8,000 that he personaly claimed in his refund?

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