The Internal Revenue Service released on Jan 15, the new form that eligible homebuyers need to claim the first-time home buyer credit this tax season and announced processing of those tax returns will begin in mid-February.
The IRS also announced new documentation requirements to deter fraud related to the first-time home buyer credit. The new form and instructions follow major changes in November to the home buyer credit by the Worker, Home ownership, and Business Assistance Act of 2009.
The new law extended the credit to a broader range of home purchasers and added new documentation requirements to deter fraud and ensure taxpayers properly claim the credit.
With the release of Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, and the related instructions, eligible homebuyers can now start to file their 2009 tax returns.
Taxpayers claiming the homebuyer credit must file a paper tax return because of the added documentation requirements.
In addition to filling out a Form 5405, all eligible homebuyers must include with their 2009 tax returns one of the following documents in order to receive the credit:
A copy of the settlement, or a copy of the retail sales contract in case of Mobile Home purchase.For newly constructed house a copy of the certificate of occupancy. Taxpayers claiming early for the credit may see a tax refunds in two to three weeks.
More details on claiming the credit can be found in the instructions to Form 5405, as well as on First-Time Homebuyer Credit page on IRS.gov.
We will be receiving 8000 back from our tax filing, after we pay our income tax, or if we had to receive $1500 we will be recieiving 9500?
maria,to claim 8000 credit for first time home buyer,house must be your primary residence,file a paper return and show proof of purchase. Credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.