Update: The IRS is now accepting tax returns claiming the $8,000 first-time home buyer tax credit.
Earlier this month, and in some cases at the end of February, major tax software providers like H&R Block, Intuit TurboTax, and TaxAct updated their programming to allow qualifying taxpayers to claim the $8,000 tax credit for first-time home buyers. There was only one problem with providing this level of customer service. Although the IRS provided the guidelines to software vendors to begin accepting this credit, the IRS hasn’t updated their own systems to accommodate the new law.
Thus, many taxpayers who claimed the $8,000 credit and filed their tax return electronically found their submission rejected by the IRS. Despite the speed at which the software vendors provided the update to customers, the IRS was still unprepared.
Those who filed with the first-time home buyer credit and found their retuns rejected should resubmit after 7:00 PM Eastern Time on March 30. If you wait until March 31, you will be safe. If you haven’t submitted your tax return yet, wait until then to ensure your return will not be rejected at first.
If the software you use for filing your taxes charges a fee, you will only be charged for one filing, even if your first was rejected by the IRS.
Updated March 21, 2011 and originally published March 16, 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.