How to Claim the First-Time Homebuyer Tax Credit

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

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

Who Can Claim the Credit

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

Who Cannot Claim the Credit

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

Details of the Credit

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

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

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

What This Means for You

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

352 Responses to “How to Claim the First-Time Homebuyer Tax Credit”

  1. Anonymous

    I am trying to file 2009 taxes for my housemate and find that I cannot use the 2008 revision of 5405, and apparently I ALSO cannot use the December 2010 revision; however, I cannot find the February 2010 revision anywhere.

    I am wondering, though, if my housemate is eligible to claim the credit on the 2009 return. She has never owned a home, by herself or with anyone else. In February 2009, my mother, with whom I co-owned our house (joint tenancy), died. I removed my mother’s name from the deed and added my housemate as joint tenant. My housemate contributed quite a large amount of money to me in consideration of this, so she certainly can be said to have bought her share of the house, but she is not on the mortgage. We only have the joint tenancy deed to prove the transaction.

  2. Anonymous


  3. Anonymous

    I bought a home in February 2009. I never filed for the first time home buyer Tax credit because i didn’t work in 2009.I worked in 2008 filed a tax return in january 2009.
    I co-own an old mobilehome at the time with my brother.

    I was wondering if i still qualify to get a first time home tax credit?

    anyone respond if you know .

  4. Anonymous

    Has anyone received their First Time Homebuyers Credit?

    We just purchased a house this past March 19, 2010 … sent in all the necessary forms/documents to the IRS.

    IRS sent us a notice that we were refused this credit because we owned a 5th Wheel Travel Trailer in 2008.

  5. Anonymous

    I would like the answer to question #321. I inherited a paid for house from my parents and now want to buy another house but keep this one too. How do I do this.

  6. Anonymous

    Personally, with any IRS rebate on homes, housing offered, I’d never commingle any remodel, building conversion, non straight one person new purchase mortgage claim on any IRS form.I think these rebate offers will be disappearing in the future, anyhow. The IRS processing of them, and new Fed laws have prooved a fiasco for way many angering them, a failure in some instances for the needy(any of us). Best be done without them in the future.
    Let the housing market correct itself. And the Fed can still FORCE the lenders market to qualify good-intended buyers, with some record of trying hard to pay, despite the economic depression onset in 2008. It was already ingear and apparent to the savvy from August, 2006 onwards. It just snapped failure quickly in 2008. I saw Prescott,AZ on the chasm of fall in August, 2007 and decided not build a small kit house on a cheap lot in the county. And then it fell, hard, fast, way down. They still haven’t gotten the idea, with so MANY in an overglutted market still up for sale. Caveat Emptor, wait, wait, wait, watch like hawks eyes. The high ‘asking’ prices scare the the buyers AWAY. Avoid Realtor shake-downs of you as the Buyer.So many Sellers willing now to negotiate directly with the Buyer There is a huge differential between listing and selling prices, IF there is a sale in the majority of cases. Wait, offer LOW. Get it legally, legitimately and get in on the LAST home buyers IRS rebate.Otherwise don’t, you won’t. Anywhere USA.

  7. Anonymous

    Spoke via phone with my IRS TAS agent, yesterday.I’m going to wait a bit to see if it really happens-my rebate.Otherwise I will file suit well before Sept. 30.She knows my hardship circumstances intimately and is working on cutting through to get my refund out.
    I have NOTHING to say for the regular IRS agents any of you get on the phone over and over.If you have special health, low income circumtances, try to get a better TAS agent. The IRS is woefully wrong, often, choosingly, selectively.I’ll keep everyone posted on what happens in my case. Waiting, patient, ready.

  8. Anonymous

    CAVEAT EMPTOR now pointing at the fraudulent actions of the IRS sending(typical of what they have sent many others-have extensively read the blogs on different sites)’excuse’ letters such as they didn’t have your current address(duh-they sent the letter here and you received it?), you owned a home in the last several years(right-in the 1980’s,rented since until I bought and closed then in November, 2009).
    I’m going for a broad based tax lawyer to SUE to IRS(way too late sending my refund-many, many months-some people persist in using just IRS contacts and wait up to two years as the GOV doesn’t have the money)for legal fees, my legal, legitimate rebate(as the GOV advertised-that’s why many of us bought when we did!), and interest plus any other specific damages.
    The IRS is ‘offering’ that $6,500 rebate now, and hasn’t come clean on former offered rebates, has not been investigated and exposed for THEIR INTERNAL FRAUD, nor paid out of prior ‘offerings’ in full.

  9. Anonymous

    My son and his wife have been in the process of purchasing a new home since april or 2009. It is a custom modular on their land. They have not closed on the home yet , but have been granted temporary occupancy. They will close within a week or so. They filed their taxes with H&R Block in April and H&R Block filed the form for the $8000 rebate. They received a letter today from the IRS saying they were denied the rebate because they had previously claimed either mortgage interest or assistance of some sort. They always file 1040EZ and do not itemize so this is not possible. Is their something that can be done to reverse this or is this a glitch in the system?

  10. Anonymous

    We just filed for our $6500 on May 5th, 2010 and were told that you cannot file electronically because you have to send in a copy of the HUD from buying your house and also documentation showing that you’ve owned a home for at least 5 out of the last 8 years. This is why it’s going to take longer than usual to receive our refund back. I’m hoping it doesn’t take much longer than a month. . it doesn’t really feel like this $6500 rebate is really helping towards anyone’s downpayment when you can’t even get your hands on the money until well AFTER you purchased the home. However, I don’t see how you can apply until you’ve bought the home because of needing that HUD statement. . it would be completely impossible.

  11. Anonymous

    I signed the loan documents on my new home on December 29, 2008 and I received the $7,500 tax credit which I am supposed to pay back beginning in 2010. Then they passed the $8,000 tax credit for homes purchased on January 1, 2009. Since there is only a 2 day gap in the purchase of my home, do I still have to pay the $7,500 back over a 15 year period or will there be an amendment to this?

  12. Anonymous

    Here’s a problem I didn’t see posted:

    My husband and I are young, 23, and just bought our first home in August 2009. We purchased our home for $60,000 (which my sister in D.C. was shocked about, this can actually buy you a nice house in parts of PA). Because I am a student, my parents claimed me as a dependent on their tax return. For this reason, my name is also not on the mortgage for our new home and I therefore have no entitlement to the home buyer tax credit. My husbands tax preparer fills out the paper work and says that he is only entitled to $4,000 since we are married and filing separately. This I understand if both are entitled to the credit, but in this case, I am not. According to this program, he should be entitled $6,000 but according to the tax form and his tax preparer he is only entitled to $4000. I wasnt letting it go through until I found more information so we filed an extension. When your a grad student, you will fight tooth and nail for $2000 ha. Any advice?

  13. Anonymous

    I bought a house that was half burned March 14, 2008.Would the move in date be the purchase date like it is for a newly constructed house?

  14. Anonymous

    I put a contract on my house in December 2009. Closed in January 2010 what year can I claim my first home buyer tax credit? My house was $320,000.00 How much credit should I expect?

  15. Anonymous

    I am curious about something. My fiancee and I bought a house in 9/2009 for $287,000. She has never owned a home, while I have owned one in the last two years. My credit is better than hers, so the mortgage is in my name, but she is on the Deed of Trust, with joint ownership and right of survivorship. Can she claim the full $8000 tax credit even though she’s not on the mortgage?

  16. Anonymous

    My husband and I purchased a bank owned home in 2009. I need to prove we purchased the home with my hud closing cost form. However the only signitures on this form are my husbands, mine, and the closing agent. There is no seller signiture. Is this going to be a problem for my tax return?

  17. Anonymous

    Me(1st time buyer) and my wife(owned before) were advised that we would get the 8000 if the loan was just in my name. Professional people such as our bank loan person, realtor, accountant, lawyer–nobody had concerns about us getting the credit. Guess what? We got a letter saying we were not approved. This is misleading and ridiculous. Screws us majorly.

  18. Anonymous

    I am single and 22 years old. I just built my own house, moved in Nov 2009. There was no loan, no realtor, no bank. I paid cash for all materials and my Dad and I provided the labor. I have copies of all my receipts which amount to around $15,000 in materials. Can I claim this credit? If so, do I get credit for any of my labor when figuring the purchase price? Also, what documentation am I required to send in with my tax return? Thanks.

  19. Anonymous

    Lauren, I think your tax person is confused. Just because your tax preparer says so ..doesn’t mean they are correct. I have rec. credits before on other things… ..etc. and have never reported as income. I would tell them they are incorrect and you should also get a 2nd opinion from another local place if you stick with this person. Just my thoughts. I have had people from H & R Block mess up my taxes because I own rental units. Somehow that’s confusing to them? I started doing taxes myself 3 years ago and have saved 1k in fees from them alone. Maybe I’m wrong, let me know if you find out otherwise because I’ve never taken this credit before. Cheers!

  20. Anonymous

    We purchased our home in March, 2009. We filed an amendment to our 2008 tax return to get the credit and received the funds within a few weeks. We went to our tax preparer last week and were told that we have to claim the $8000 as income, and would be taxed as such on the credit. I cannot find information ANYWERE in regards to this, can you please help us?


  21. Anonymous

    Filed and received the $7500 tax credit on my 2008 taxes (which must be repaid) BUT we did not complete the home and move in until March 2009. Can I now file an amended return to receive the extra $500.00 making me eligble for the $8000 non payment tax credit because of the move in date being in 2009?

  22. Anonymous

    Question: I bought a house Jan 2009, and claimed it on my taxes for 2008. I am married, but filled separate and I am the only one on the loan and title…therefore, I only claimed $4000. I’ve read that if you file “married filing separately” that the spouse has to claim the other $4000…but hes not on the loan or title, so we didn’t claim the other $4000 on his tax return. ***Can I go back and amend and claim the other $4000 on my return???

  23. Anonymous

    I have a question about first time home buyer… in 1999 my parents, sister and I bought a house, our names are on the title. In 2003 I moved out (got married and had a baby) and rented an apartment. Sept 2009 I bought my own house, my question is… am I a first time home buyer? my name still in the title of my parents house but the mortgage for the last 6 years is on my sister”s and husband name. Do I qualify as a first time buyer?

  24. Anonymous

    I was inherited my grandmother’s house Nov. 2005. My husband and I have lived there since February 2006. We borrowed money to consolidate debt but it did NOT purchase the home. Therefore, I have never bought a home. In August 2009, we purchased a home in another city and moved due to work. Is there anyway we can qualify for the 1st time homebuyer since we DID NOT buy the first home we just used the equity to pay off debts? Thanks.

  25. Anonymous

    I brought house 2009 but i don’t work for last two years due to the economic crises. because is hard to find job now days any way also, house price is low so, i just brought one. can i clime for my first time home buyer tax credit? or dose it is required that i have to work oder to get those money Thank You.

  26. Anonymous


  27. Anonymous

    Can we file married filing separately if only spouse purchased house in 2009 to get credit? I did purchase a home withmy friend and my husband is not on the mortgage only on the deed. I am the primary on the mortgage and my friend the second one. How can I claim the $8000 credit filling separately? Thanks

  28. Anonymous

    I purchased a house with my fiance back in Sep 2008. I am a first time home buyer, but he was not. The loan is under both names though. We married two months later after the purchase, therefore we filed our 2008 taxes as married.
    Unfortunately, Jackson Hewitt never advised us of the $8000 First Home Time Buyer Relieve back then, so we never filed for it. So I was wondering if I could still file or my marriage status would affected me since my husband is not a first time buyer.

  29. Anonymous

    My wife and I are current owners of a duplex. We have owned it for 4 years 7 months. We planned on purchasing before April 30th 2010. we are going to fall a couple months short of owning the duplex of their “at least five year” guidlines to receive credit. This kind of ticks me off!

    I was thinking of just waiting to buy because the government will probably extend their current “coupon” once this one runs out.

  30. Anonymous

    closed on house december 30th 2009. Should I just wait til I due my taxes at end of January, or should I do something now ? Also my mom past away last spring. I bought this house from the estate. Do I still qualify?

  31. Anonymous

    My fiance and I purchased a house this week. We qualify for the credit but we are not married. Do we check box 3 of the 5405, “A first-time homebuyer, enter $8,000 ($4,000 if married filing separately)”. And do we both fill out a separate form?

  32. Anonymous

    I was divorced in Jan 2009. My x-wife was awarded our home that we lived in together for 10 years. Now single, I purchased a new home in my name only in Sept of 2009. Will I qualify for any tax refund? Thanks

  33. Anonymous

    I have read this whole thread and have gotten mixed answers for the question I am about to ask. It is obvious that it may be “wrong” to file for the tax credit when you are only under contract on the home, but the fact is that it has been happening and is possible without any consequences as long as you do end up closing within the timeframe that IRS has made (before June 30 2010), so therefore I ask, I just became under contract and am scheduled to close on March 1, 2010. I plan on efiling my 2009 taxes on February 1, 2010 after all w2’s are received. Obviously I would be one month from closing. I am positive that I will be closing, so that is not a problem. My question is: What do I put on the form? I know the address, but do I put the acquired date of March 1, 2010 or do I put the date I am filing of February 1, 2010 or does the date even matter? I know people has received their monies and am wondering what did they put to get it. I am knowledgable and know that the property has not yet been “acquired”, but will be. If they need verification by the time they send that letter I would have it. So I just need to know in order to efile and get the money before I close should I be putting March 1, 2010 as the acquired date or February 1, 2010?
    Is there anyone else that has done this? and how did it work out?

  34. Anonymous

    If you qualify for credit in 2009 and did not do amended for 2008 then have to mail in your 2009 taxes. You cannot efile them.

    In reading the posts above now I understand why they are doing this. Lots of people getting the credit before buying or in some cases never even bought a home. I would not want to be in the shoes of one of them. Big trouble with IRS.

  35. Anonymous

    you are indeed eligible for the tax credit. I am on SS disability, purchased my home in May 09, and received my $8000 in Sep 09. I was chosen for a random review. I don’t think there is anything random about them, as I think they are reviewing all claims now, but that is neither here nor there. I am not sure about claiming your car. Good Luck and Congrats!

  36. Anonymous


  37. Anonymous

    Check this crap out: This is how amazing our government works, I filed my amended 2008 return with all back up documentation needed for first time homebuyers and this is what kinda of shit I’ve been dealing with:
    1-800-829-1040 IRS calls
    WEEK 4
    called 10/16 – confirmed receipt on 9/18 only said 9-12 week turn around
    WEEK 5
    called 10/23 – nice lady- confirmed receipt 9/18 said 12-16 week turn around, sometimes addl items not reqd when sent gets pitched, then they may re-request. Told her I will call check on status every Fri.
    WEEK 6
    call 10/30-Mr. Kirkpatrick 0270509
    12-16 weeks – no info
    WEEK 7 Mrs. Hammer 0730296
    Call 11/6 – said 16 weeks for processing again. no add’l info.

    WEEK 8 Mrs. Massey 0571482
    Call 11/13 “12-16 week turn around”
    Wk 12 Earliest 12/11, Wk 16 Latest 1/8 – no info but in Oct she sees where it was up for possible review. If in review I’ll be sent a letter. It is possible if ACH on original return -that ACH may occur on refund. Or check sent within 2 weeks after approved.
    “they do keep all documents they receive, don’t just pitch them and then re-request them”. She also confirmed that all info I told her regarding my previous calls are correct,s he sees where I was given wrong info re: 9-12 wks originally. As of July a National Alert went out stating 12-16 weeks.

    WEEK 9 – 11/20 – NO CALL MADE
    WEEK 10 – 11/27 – NO CALL MADE

    WEEK 11 Bill Nazarro 0178645
    Call 12/01 “12-16 week turn around”
    Been assigned to someone in the dept for Review.

    WEEK 12 MRS. BOHANAN 0270340
    Call 12/7
    still in review

    WEEK 13 0201155
    Call 12/15
    still in review for first time home buyer credit can take up to 180 DAYS from OCT 2! (APRIL!!!!???) I left a message for a supervisor this time because even the IRS.GOV website says they are processing firs time homebuyer credit within 12-16 weeks.

    Isn’t it wonderful to know where all our F-ING tax dollars go to fund such an inadquate FING system.

  38. Anonymous

    I singed on bought a house on dec.08………can I get the tax break of 8,000……….my credit was not good enough so we found a friend that signed all the paper work my name is not on it any where,but I make all the payments to the bank in tenn. I have proof all the check stubs,the invoice the bank sends every thing….Do i still get it..

  39. Anonymous

    My wife and I are signing a rent-to-own contract on our first house next week. We will be responsible for all repairs, property maintenance, and so forth. Would we qualify for this credit?

  40. Anonymous

    How I claim this even though I have tried many times to get it buy a realtor whom bank denied me serval times, due bad credit. I’m just wondering in how this works? I never bought a house before.

  41. Anonymous

    I purchased a 2008 Fleetwood manufactured home November 29, 2009. Do manufactured homes qualify for the $8,000.00 rebate? If so, who do I see about this? Thanks for any help you can give…..

  42. Anonymous

    I purchased first time home on Nov 27, 2009. So, I can get the $8,000 credit. But, I want to get the money as soon as possible. I am receiving conflicting answers. One persn says all I need to do is submit Form 5405 to IRS for 2008. Another person says I have to submit Form 5405 AND an amended 2008 1040X form. Which is it?

  43. Anonymous

    I purchased first time home on Nov 27, 2009. So, I can get the $8,000 credit. But, I want to get the money as soon as possible. I am receiving conflicting answers. One persn says all I need to do is submit Form 5405 tio IRS for 2008. Another person says I have to submit Form 5405 AND an amended 2008 1040X form. Which is i?

  44. Anonymous

    If I close ON Dec. 1, 2009, does anyone know if I can still claim the tax credit? I know there is an extension, but I am going to amend my 2008 taxes as I was single & not married then, but I know the deadline for being able to do this is by Dec. 1st…is it ON Dec. 1st or BEFORE Dec 1st, 2009??

  45. Anonymous

    My understanding is that you can file an amended 2008 return and claim the credit early, but payment can sometimes take quite a while. You could possibly get the credit back earlier by doing the entire amended return for 2008, but you’ll have the extra cost or hassle of re-filing.

    I closed on a house Oct 30, and I plan to wait for the 2009 return. If you do direct deposit for the tax return you will likely have the cash within 2-3 weeks of filing. If you can get your W2(s) by the end of January and e-file within a week you should have your tax credit by week 1 of March. The amended return done right away might get you the credit a month earlier.

  46. Anonymous

    i closed on my home nov 5, 2009. should i file it on my 2008 or 2009 return? my agent said i should send the credit form in immediately, but i thought i had to wait for my 2009 return. can someone clarify this for me? can i file the credit now? and if so, what paperwork do i need? i’m getting married in may and i am in need of this credit. can someone help?

  47. Anonymous

    My wife and I were married in Aug of 2008. She was recently divorced. She and her ex lived in there house that was in his name (mortgage and deed). I have not owned a house in 3+ years. I just closed on a house on Oct 30th in my name only (mortgage and deed). Can we still claim the $8000 tax credit??

  48. cd: It’s a tax credit, which means that it’s a reduction of tax owed, not a deduction. It’s also refundable, which means that you get the money even if it reduces your tax liability below zero. Also, in the first paragraph, I specifically mentioned IRS Form 5405 — that’s how you claim it.

  49. Anonymous

    I did our 2008 taxes using an h & r block tax program in March 09; we were talking to neighbor regarding buying his house on short sale. the software allowed me to take the FTH credit, which we did. We received it, we are still under short sale contract and I received a letter from IRS, asking for verification of purchase. I am now worried since we received approval that IRS will have notified caivrs and I will not have a loan anymore, can I file 1040X releasing the $8000 and return the money, or contact the irs on this one.

  50. Anonymous

    I have a question about the First Home Owners Tax credit for 2008. When we filed our 2008 tax return, we did not claim the FHO tax credit, nor did we know about it at the time. Is there any way we can still claim that tax credit? We bought our house in late April 2008, and we really don’t want to miss out on this credit. Is there any way we can still claim it through an amended return… or maybe claim it on our 2009 tax return? Thanks in advance! Tina

  51. Anonymous

    I did find out that my name was NOT on the last house I lived in and that was about 2 and a half years ago. I also found out that the house I owned and sold was in Jan. 2007. I’m missing the 3 years by 3 to 4 years because I closed my new one out in Sep. 09. It looks like I’m in the same boat as Stacy, so I’m wondering about the same thing as Stacy. Thanks in advance.

  52. Anonymous

    My ex-husband and I sold our home in March of 07 and I am purchasing a new home that should close Dec 1st. Thus, it will be less than 3 years since I was on a deed. However, since we sold the house we separated and then got divorced. Is there any clause in the tax credit for recently divorced single mom’s (even if its been less than 3 years since I owned).

  53. Anonymous


  54. Anonymous

    Thanks John, I was divorced by in 2007, but only married 1 year, and I don’t think my name was even on the house. Sounds like I wouldn’t qualify but wanting to ask to make sure. I would check to make sure my name was not on it before going any futher though. Thanks in advance.

  55. Anonymous

    @ Jamie:
    If you qualify as a first-time homebuyer and are within the income limitations you should qualify for the credit for your September closing. As long as you have not owned your principal residence in the last 3 years you should be ok. if your marriage ended less than 3 years ago and there was a home owned between you then you might not qualify. If the disability is your only income you shouldn’t be outside the income limits.

  56. Anonymous

    I’ve got a question about the first time homeowner tax credit and being on disablity. I’ve been on disablity going on 4 years and I’m divorced. I just bought a new house and closed on the sale back in early Sep. I went through USDA Rural Dev. to get the loan. I was wondering since the loan was a government loan and being on disablitiy would I qualify for this tax credit? If so how would I go about filing for it or what type of tax form do I need to fill out. Just curious, hearing about it on TV and seeing the information on the internet got me wondering. Thanks in advance.

  57. Anonymous

    well, I sent my amended return UPS and got a signature/delivery confirmation. I’ve called every Friday for the last 7 weeks only to hear ‘yea we rec’d it on “date”.

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

    Yea, I love how Obama did this tax credit to help the economy however if Obama can’t ensure that the IRS can process them in a timely manner what good is it going to do?

  58. Anonymous

    Im about over the IRS. Man they are useless. I sent the paperwork in on 8/27/09 and was told wait 6 weeks to confirm we recieved it. Called on 9/27/09 just for the hell of it- hadnt been noted in cpu and was told give it two more weeks. Did that, called back on 10/15 was told they recieved it on 8/31/09. So another 4 weeks have passed and I am getting anxious and call back today and get told “we have never recieved it and no one ever told you we did according to our records”.

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

    Is anyone having this trouble with these jokers?

  59. Anonymous

    My wife and I have 5 acres, with an appraised value of $75,0000, and that we still owe $43,000 on. We just bought a house, 10 miles away, that needs to be moved to our land. The move will cost around $9,000. We will need to newly construct a full basement and foundation. Will need to add an addition and rebuild a fireplace and chimney, add a radiant floor hydronic heat system and several new construction upgrades to reburbish it into a fully habitable well constructed home. All new construction and upgrades added to the basic shell (which needs to be moved, as indicated) will then form what will be our first time home. The move, new construction elements, overall upgrades, will run upwards of $60,000. On top of the $43,OOO still owed on the lot, which will get tied into a construction to final mortgage package. The final package will top $110,000. Will this whole mortgage package if closed by this December 2009 with a move in date by April 30, 2010, qualify in whole or in part for the $8000 First Time Home Buyer’s Tax Credit? The house shell would not be sufficiently habitable in it’s own right. In combination with the new construction details, add-ons, and upgrades – then it make for a habitable dwelling for my wife and I. I would seem to me to qualify in terms of the spirit of the incentive , if not in all the specific indications as seem to be laid out? I’m also assuming that FHA 203K projects that can include fixer-uppers, and even house moving would fit within the guidelines of eligibility for the full $8000 Credit? The question is, how flexible can one be in the interpretation of the rules and regulation policies of the $8000 tax credit program?

  60. Anonymous

    i was told today i did not qualify because i would be getting a construction loan. But don’t you close the construction loan and then buy the house.

    I thought if i stayed the night in the house before April 30, 2010 or June 30, 2010 which ever one it is. Would that not make me quilify for the loan?

  61. Anonymous

    I sold my first home of 7 years in July 2009. I have been building a house since then. We moved into the partially finished basement. My question is that we are scheduled to have the house finished in December will I qualify for the $6500 or did I miss out because we had already moved to the property? We have not finilized a mortgage or filed homestead yet as I do not have to until December 31, 2009.

  62. Anonymous

    We owe back taxes and will close on our house on Nov. 17th. We borrowed (bond loan) the money for our closing costs with the agreement to use the 8k to repay it within 90 days. My questions are these:

    a) Will they repay our tax debt from the 8k,
    b) We paid our tax debt for 2009, will we get that back, and
    c) Will they allow for us to repay the bond loan first (since we borrowed it from the government), and then pay our debt?

  63. Anonymous

    I have the same question as Sandy. I just heard that they extended the refund for owners who have owned thier first home for 3 years or less get $6500 tax credit. Is this true and how do I get this credit?

  64. Anonymous

    my income is $95,000 for year of 2009, I just bought a house and closed it 11/1/2009. Under the current law, I won’t get 8k credit because my income is more than 75K, but with the extension rule, would I get 8,000 credit because under the new rule, they increased the income limit to $150,000 for single. Do I have to close the house after 11/30 deadline for the new rule to be effective? thanks,

  65. Anonymous

    I was divorced July 7,2009, my X and I had bought the house jointly and lived in it for 24 years. The house was sold and after my divorce was final, I purchased a home on my own. Maybe I grasping at straws here, but would that make “me” a first time home buyer?

  66. Anonymous

    Thanks for your site. I am supposed to close on Nov 25th. I am a single first time buyer making $85K a year. Under current law, I would receive a $4K credit because of the phaseout. The bill that the Senate approved raised the the range from $75 to $125, which would make me eligble for the full $8K assuming it passes the house and Obama signs it. Do I need to close after Nov 30 to get this additional $4K? A realtor told me it does not matter. What does anyone think?

  67. Anonymous

    I purchased my first home in 2007. And I just read that they extended the refund for owners who have owned thier first home for 3 years or less get $6500 tax credit. Is this true and how do I get this credit?

  68. Anonymous

    I was recently married on Aug. 8, 2009. My wife has owned a condo for the past few years. I am purchasing a house this year. Since we were not married in 2008, may I submit an amended 2008 tax return to claim the credit?

    Thank you.

  69. Anonymous

    From my research I came up with a few tips to help speed up the process if your just now going to try and file for it.

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

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

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

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

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

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

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

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

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

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

    The bottom line is that it’s probably going to take awhile for them to get you a check, but assuming everything is on the up and up and you get in before the deadline, you will get the money eventually. Sure they really dropped the ball on providing information on where to file, what to include, and wait times, but sadly thats just life. At least you don’t have to pay it back!

  70. Anonymous

    For those wondering where to find the mailing address where you should send form 5405 and 1040x it shows in the instructions that come seperately for amending your tax return.

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


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

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


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

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

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

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


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

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


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

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


  71. Anonymous

    #1- If you bought your home in 2008, you do not qualify for this tax credit. If you meant 2009, then you’re good.

    #2- If you do qualify, you must pursue finding the form 5405 on the IRS website yourself; no one is going to seek you out and hand you or mail you this form. There is more to it than just filing the 5405 also which I will not get into. I suggest you call the IRS.

  72. Anonymous

    We purchased our home on October 15, 2008 and was informed by my previous landlord about the $8,000 First Time Home Buyer Tax Credit. This opportunity to make repairs on our home is God sent and will be beneficial to us once we are informed of when we will be given all the information in regard to recieving the Form 5405. Again, this is our first home and we would like to begin this process immediately.

  73. Anonymous

    I called IRS and they told me typically it’s 30 to 45 from the day they requested additional information that i should hear something. Well, I’m far beyond 45 days and they keep tell me 2 more weeks. Unbelievable! I’ve been waiting since the first week of June. This is crazy!

  74. Anonymous

    The IRS website does not tell where to send this form. I told them it would shure be nice if they posted this info some where on their site! I had to call the main IRS office, and after 20 minutes on hold, they told me that since I live in Arkansas I would send mine to the IRS, Kansas City, MO. 64999. If you live in IL. I don’t know where you would send it.

  75. Anonymous

    my granddaughter, a college freshman, bought her first place, she has filled out all the paperwork but cannot figure out where to send the application to get the $8000.00 she has qualified for- can anyone please help – it’s in northern Illinois.

  76. Anonymous

    hey everyone! i just wanted to tell you that because os this website i made a point to send my hud settlement statement with my amended forms. oh, and made sure i had already purchased and closed on a home. anyway , i received my check in the mail 8weeks exactly from when i sent them out. i learned from your mistakes.

  77. Anonymous

    I filed my amended return to Austin office in early June. I’m on week 17 and haven’t received anything. Told it’s still in process. At this point, I plan on calling weekly at this point in hopes of them telling me a check will be coming soon.

  78. Anonymous

    You can get form 5405 from irs website ( You can apply for it now if you have already bought your home. You just have to amend your 2008 return with a 1040x.

  79. Anonymous

    I am in the process of buying a home. My lawyer says that not only do I have to close by Nov 30th, I have to sign the contract by Oct. 1. This is the first I have heard regarding being in contract by any particular date. Do you know about this?


  80. Anonymous

    Can anyone tell me. Can I get this credit if i file married filing separate. My Wife has a home that is sole and separate property and I have never owned a home until now. I live in it full time as well…

  81. Anonymous

    I have signed a purchase agreement on a new home that is being built. I am 66 years old with a dependent mother of 87 years old so the $8000. is very important to me. If they do not extend the date is there anyway for me to claim the tax credit with only an agreement?

  82. Anonymous

    I sold a mobile home in 2007 and I am set to close on a house in early October. My mortgage company told me that as long as there was a “title” and not a deed for the mobile home then you would qualify for the $8000 rebate. So if you registered it at the DMV then you should be fine because they handle the titles for mobile homes. I’m not an expert so you may still want to double-check for peace of mind.

  83. Anonymous

    I am wondering if I qualify for the $8000 tax rebate. I purchased a mobile home in 2005 and still own it. I had to register it at the Department for Motor Vehicles. Is this still considered a house or is it considered a motor vehicle? We are waiting for the closing date on our home in Indiana. Any advice would be great. We didn’t know if we qualified in this case or not.

  84. Anonymous

    I bought a house in Aug 2008 and did not claim the $7500 on my 2008 tax return. My Question is can I claim it on my 2009 return? I would rather not file an amendment to my 2008 return if it can be avoided.

  85. Anonymous

    My husband and I filed the amended tax return May1 and still havent received antrhing in the mail. Does this chech even really exist? Everytimr I call the 800 number I get the run around and never accually talk to a person. Anyone received theres that filed around that time? Its been longer than 12 to 16 weeks so anyone have answers because I dont.

  86. Anonymous

    My husband and I filed the amended tax return May1 and still havent received antrhing in the mail. Does this chech even really exist? Everytimr I call the 800 number I get the run around and never accually talk to a person. Anyone received theres that filed around that time?

  87. Anonymous

    I was reading on that the IRS Commissioner Doug Shulman said we can put money into our pockets right now rather than waiting to file them… if this is true, how do I go about in doing this?

  88. Anonymous

    WHAT IF SCENARIO: I am purchasing a home right now under a contract for deed.

    WHAT IF: I lose my job next year and am forced to sell my home or hand the house back over to the previous owner. How much of the 8K do I return? What if I sell the house for exactly what I paid? What if I sell it for 2K more than what I bought the house for?

  89. Anonymous

    My husband and I just signed a contract on a home today, set to close October 2nd. I’ve been told that we can file an amendment to our 2008 return in anticipation of closing in order to get our $8000 back possibly before closing or at least in time for our first mortgage payment. Any comments?

  90. Anonymous

    My husband and I bought a house in Feb of 2009. So we are eligible for the 8,000 tax credit. We are aware that you must purchase a home before Dec. 1st, 2009 to receive the credit, but does anyone know if you must file your taxes before that time? Will it be fine that we file our taxes in Jan of 2010 to still receive the 8,000 dollars?

  91. Anonymous

    My son bought a home then rented it out. He plans to file for the $8,000 tax credit. I warned him that this house needs to be his primary residence for three years in order to get that money but he says the gov’t has no way of verifying where he lives. I didn’t agree with this dishonesty but he says all his friends are doing this, thinking they will get a cool $8,000 check in the mail.

  92. Anonymous

    well.. i filed for my first time home buyers credit on april 1st…. and the recevied it on april 4th….. on June 26 I got a letter stating that i going to be audit for a ramdom review…. july 10 i got another letter saying.. i need to send in closing papers on my house i purchase….. july 20th i was assigned to a examiner….. yesterday i get a phone call from the examier saying that everything look great and will be getting my check within 2 weeks… so… everyone who is filing dont looke for your check to be here 8- 12 weeks…… the examier told me everyone is goin to be reviewed for the tax credit…….. good luck everyone

  93. Anonymous

    I am closing in just a few days and was told that I could get the $8,000 tax credit back in approximately 20 days, as long as it is filed by a CPA…. does this sound accurate?
    Thank you,

  94. Anonymous

    Sorry about your divorce. I have read about other couples each filing for half of the credit. If I was you, I would call the IRS or a tax preparer like H&R Block and ask them. I’m sure there is a simple answer for this.

  95. Anonymous

    my husband and i just closed on our house on april 21, 2009. well as luck would have it (sarcasm)… we are going to get a divorce probably before the end of this year. who files for the tax credit and who gets it?! it’s his name on the loan and both of our names on the title. thanks for your help!

  96. Anonymous

    I am so confused. My fiance just signed a contract for a house that will be closed on 10/31. According to the agents he can file the ammendment and other forms now, using the closing date on the contract so he can get it back in time to use it for the down payment at closing. On the other hand, We’ve also been told that some lenders that are approved can do what they call a bridge loan so you can use your 8000 credit for closing but not for down payments. Can someone please clarify this for us. Thank You

  97. Anonymous

    I think you people misunderstood me. My husband and I missed the 7,500 credit by 6 days. We would have been grateful to have gotten that money and gladly payed it back. However, we closed on our home April 2nd 2008 and missed it by 6 days. I was simply reading other comments where the people who got the 7,500 were complaining that they had to pay it back. As opposed to the people who closed in 2009 got the 8,000 and DO NOT have to pay it back. If the people who qualified in 2008 think that they have something to complain about then they should sit back and think about the buyers who purchased their home before April 9th of that year and how grateful some of us would have been to have gotten the 7500.

  98. Anonymous

    If you file an amended return because you actually purchased a house, why would you split hairs about sending in proof of purchase? You don’t have to send in the Hud1 form if you would rather wait for the IRS to receive your amendment, and then request the HUD1. Why would you do that when so many people have already gone through it? I filed a regular return, then received a letter stating they needed further documentation showing proof of purchase.

  99. Anonymous

    I am currently going through a divorce and looking for a house. My name is not on the mortgage that my husband has, but it is on the title. Would this disqualify me from claiming the tax credit?

  100. Anonymous


    You don’t have to pay back the $8,000 credit. It’s basically free money. Last year’s credit (the $7,500 one) had to be paid back, but not this year’s.

  101. Anonymous

    RE: above question on submitting the HUD 1 form along with amended return and form 5045,

    Why? there is no written request for the HUD 1 written anywhere, where did you get that information?

  102. Anonymous

    I am sitting here sick to my stomach reading the posts of people who qualified for the 2008 tax credit because they have to pay it back!!! BOOO HOOO! My husband and I closed on our house April 2nd 2008 and would be grateful to have had this credit and payed it back. Get over it people!!! Atleast you didn’t miss the credit by 6 days! And you sit here and whine as we struggle to pay our mortgage!!!!

  103. Anonymous

    UPDATE: So I efiled on 28May, chosen for a “random review”, and assigned to a worker 6Jun. After 8 weeks of holding my return, It was finally approved, and sent on it’s way to actually have my return released. Now, I was told to be patient for another 4-6 weeks. Total time will be 14 weeks, if I receive it in 4-6 weeks.

  104. Anonymous

    I divorced my husband one year ago in 2008. Prior to our marriage he bought and closed on a home. I was never on the title/mortgage. I have never owned a home. Am I elligible for the tax credit?

  105. Okay, enough name calling and nastiness. This is a place where people should be able to come ask questions without fear of being attacked. I have gone back and cleaned up this thread a bit to remove the negativity without removing the helpful answers. I do not want to close the comments on this post, but I will if the attacks don’t stop.

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

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

  106. Anonymous

    You will need to submit paperwork that you receive at closing. It is either HUD 1 or HUD 2. It is an itemized list of closing costs like insurance,taxes etc.

  107. Anonymous

    Direct deposit is always quicker than waiting for a check in the mail, but the quickness only aspplies after they have worked your return. The time you are saving is simply mail time.They still have a backlog of atleast 2 months just to get to the returns. They received my return 28MAy, along w all requested paperwork(proof of purchase,) it was assigned to someone on the 6th of June, and it still hasn’t been reviewed.

  108. Anonymous

    Once you purchase the home, it’s yours. You are eligible for the credit, even if you have elephants living in it with you. It wouldn’t matter if 20 people lived with you, or you lived by yourself-if the title is in your name, and the loan is in your name, and you have not owned a home in the last 3 years, you are eligible for the credit.

  109. Anonymous


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

    Thank you

  110. Anonymous

    I just spoke to the IRS on 07/24/09. I amended my taxes and the IRS received it on May 27. My accountant said that I will be receiving a check and that the IRS could not direct deposit the money. Also, I was told by my accountant that it would take 6-8 weeks to receive the check. However, the IRS agent told me on Friday that now amended returns to receive the $8,000 first-time homebuyers credit check will take 12-16 weeks. I am in week 9…so I am hoping to receive by week 12!!

  111. Anonymous

    I was wondering, many people on here stated that they waited 8-12 weeks to get their tax credit check from amending their 2008 returns. I am amending my returns and I was told by my CPA I can request a Direct Deposit of the refund to my bank account and the process is quicker. Anybody know if this is true and why didn’t everyone else file for direct deposit vs. check, does it have anything to do with amending?

  112. Anonymous

    My husband owns a home. I have never owned a home. We are in the process of getting a divorce. As long as I purchase a home after the divorce is final and before December 1st, am I eligible for the tax credit?

  113. Anonymous


    You can definitely try to get the $8,000 now. You’d just need to submit a 1040x form, which is essentially an amendment to your ’08 taxes. An accountant can help you with the process.

  114. Anonymous

    My fiance and I were purchasing a piece of property from a landowner for $48,000 we had all our paperwork and where making payments on the land. We went to one of the local mobile home lots to look into purchasing one to place on the land. They told us we could claim the $8000 tax credit on our taxes and use that as our down payment for the mobile home. I had already checked into getting all the permit’s, 911 address, etc. to have the mobile home placed on the land, and had done some preliminary paperwork to get to mobile home when we received the credit. Well right before we received the credit we found a way better deal on a actual house for $85,000 and decided to purchase that instead. So we just let the mobile home deal fall through and forefitted the land back to the landowner because we just love the house where in now. Well we filled a 1040x with a amended 5405 to reflect the changes that we made. It made our closing date and address for the 5405 change but we still have the paperwork from the land purchase which was way before the closing date that was put on our original 5405. Do you think the IRS is going to freak out on us and say we committed some type of tax fraud? I was told and lead to believe by the mobile home people that you could use the $8000 tax credit for the down payment of a new home. Did we break some rule by not following through with the deal with the mobile home people, by taking the house instead? Did I mention the house was a much better deal? I didn’t even find our until today that you couldn’t take the credit until after your closing date. I might not have been looking into that before because we had already closed on that land and had the paperwork for that already taken care of. Or am I just in some gray area here that the eventual audit will clear up? Any help would be appreciated.

  115. Anonymous

    I just closed on my home on June 29, 2009. I was told it would take 4 to 6 weeks to get the refund. Should I prepare for a longer wait? After reading some of the comments, I am begining to worry that it may not come when I need it. thanks for any feed back..

  116. Anonymous

    i am a first time home buyer and closed on my home on June 20, 2009. can i file a claim now for the $8000 tax credit or do i have to wait to file 09 tax? thanks!

  117. Anonymous

    Mary, You need to call them. They mailed ours to our old address. They will not forward the check to your new home. It goes back to them and sits there till you call. 1-800-829-1040 keep hitting buttons till you get someone!

  118. Anonymous


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

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

    Our accountant only charged us $75 for his services… me it was more than worth it to get the $8,000 so soon.

  119. Anonymous

    What if I already filed my 2008 taxes, can I still file for the $8000 tax cut before next year? We are closing on a home Aug, 2009.

  120. Anonymous

    Does owning and living in a single wide mobile home trailer with wheels attached, located in a mobile home park,taxed by the local goverent authority as personal property, not Real Property or Real Estate, preclude the owner receiving the $8,000 tax credit if they sell the mobile home and purchase Real property or a stick built home?

  121. Anonymous

    Hey everyone,

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

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

    So, for those currently waiting and wondering, that marked one day short of 10 weeks from the date we mailed in the paperwork.

  122. Anonymous

    Yes you and your husband are eligible for the credit. You have to close on the home first, as the IRS needs to see the HUD 1 form. I also receive SS disability and VA disability. Good Luck!

  123. Anonymous

    Thanks Diane.

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

    It sucks because my fiancee and I bought this house on the condition that we’d have the $8,000 by August. Since it appears this will be going slower than a snail’s pace, we’ve saved more and now have enough money to cover builder’s expenses by the move-in date. Problem is, now we need that $8,000 to go towards our wedding.

  124. Anonymous

    Brittle Fingers – The IRS finally received my 1040X amendment (I submitted it on 3/20/09 – more than 12 weeks). It also turns out I am one of the lucky ones that was chosen for a random audit. This will involve a letter that will be mailed to me within 30 days outlining the supporting documentation I need to provide to prove my purchase. I think I will be lucky if I receive the $8,000 by end of September. However, on the bright side I had a friend who received her check (plus interest) in 4 weeks so there is some hope that you will recieve your check soon, too. On another note, the State of California has funded a tax credit program for purchasers of newly constructed homes ($100,000,000). This program is offered on a “first come, first served” basis. Purchasers of newly constructed homes receive a $10,000 tax credit. However, you must close escrow first then file the required paperwork within a week of close. Also, the total tax credit is equal to five (5) percent of the purchase price or $10,000 whichever is less. In addition, the tax credit is given in equal amounts over 3 successive taxable years at $3,333 per year beginning with taxable year 2009. Good luck and congrats on your new home.

  125. Anonymous

    My fiancee and I are having our house built. Estimated completion is early September. We spoke with an accountant who stated we would be able to get the $8,000 before closing. All we needed to do was submit copies of the mortgage agreement that proves we’re going to purchase the house.

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

    I’ll try calling the 1-800 number, but I’m not expecting any good news from these crooks.

  126. Anonymous


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


  127. Anonymous


    Which IRS location did you mail your amended return to? Because I mailed mines to the ATL, GA location and they received mines on 04/15/2009, but I didnt get a date on when my check would be mailed out to me, maybe you can give me some insight..

  128. Anonymous


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


  129. Anonymous

    I am purchasing a house on land contract and my husband recieves disability that is our only income are we eligible for the credit? we sign the papers next thursday. is his income eligible income for the tax credits and is a land contract home eligible?

  130. Anonymous


    I am in the process of amending my 2008 taxes and filing form 5405 for the first time homebuyer credit. I am wondering, before I send in the forms, is there any other paperwork that I need to accompany the ameneded tax return form and form 5405? Do I need to send any copies of settlement paperwork or proof of purchase or do I just send the forms? I have been searching everywhere and read the instructions on all forms and can’t seem to find an answer. If you know please inform. Thank you!

  131. Anonymous

    FYI. I mailed my amended return out on 3/20/09. I began calling the IRS beginning at week 8 and it wasn’t until week 12 when they told me that they received my amendment and it was being processed and that it would take an additional 3 weeks until I would see the check. UGH! However, my friend told me that she received her check tonight and she mailed her amendment 4 weeks ago. I asked her what she might have done different than me. She said she sent her return to Austin, TX. I mailed mine to Fresno. We both live in Orange County, California.

  132. Anonymous

    I’m a first time home buyer. The house I have a contract on has more rooms than I need. If I rent one or two rooms out, would the house still be considered my primary residence that I can keep the $8,000 credit? I certain don’t have another place to live.

  133. Anonymous

    Hey Chuck I didnt get that letter 86c, and When i spoke to the IRS they said everyhing was good in there system, but someone did tell me that they mail out the check twice a month this month i think the dates were the 5th and the 19th so I may be getting mines soon since my date and your date is around each other.. let me know what you think..

  134. Anonymous

    well i have been doing research on that…. they said we can 1/2 it like you said… or one of use can take the full credit…… i saw that on 3 different sites…… if that is the case… then i guess my wife would just give her rights up then………..

  135. Anonymous

    yes that could have everything to do with it. I believe you would both have to file for the credit. 1/2 to one and 1/2 to the other. Thats probably the issue.

  136. Anonymous

    ohhh i ant taken it personal…….. im trying to find out what i may done wrong…… only thing is that i filed the amendment under me… and me and my girlfriend at the time bought the house together… I dont know if that has anything to do with it……….

  137. Anonymous

    Eric do a search on 86c irs letter. It appears it is something to do with you being audited. Just from the findings. I was hoping to get my check saturday but didn’t I will keep you posted since our dates are the same. Good luck, Chuck

  138. Anonymous

    yes…. i closed on it march 30th…. letter is form # 86c…. and the only they told me that it was getting transfer to another dept…

  139. Anonymous

    Eric. Have you closed on the house yet? My admendment was received the same day as yours. I was told my check was mailed June 19th. I never got a letter in the mail?

  140. Anonymous

    My amendment was received on April 4th 2009 and the IRS told the me other day that I will be getting a letter in the mail…. something to do with 86c letter…. I have not got the letter yet…H&R done my amendment.. so i guess they done the right thing…. Has anyone had this trouble?

  141. Anonymous

    Pat mine was received on April 4th 2009 they said my check was to be mailed 6/19/09. I haven’t seen it yet. Also from my understanding you already had to close on the house to be able to get the rebate. You may want to ask them that and make sure they just aren’t blowing smoke your way! Chuck

  142. Anonymous

    The IRS recieved my amended Tax Return for the first time homebuyers program on 4/15/2009, when should I be expecting my 8,000 dollar check for my closing which is less than 3 weeks away?

  143. Anonymous

    I found the answer for both of us. This came from the IRS’s Form 5405. In essence, we would have to repay the tax credit if we rent out our primary residence within 36 months of purchasing it.

    “Homes purchased in 2009. You must repay the credit
    only if the home ceases to be your main home within the
    36-month period beginning on the purchase date. This
    includes situations where you sell the home, you convert
    it to business or rental property, or the home is
    destroyed, condemned, or disposed of under threat of
    condemnation. You repay the credit by including it as
    additional tax on the return for the year the home ceases
    to be your main home. If the home continues to be your
    main home for at least 36 months beginning on the
    purchase date, you do not have to repay any of the

  144. Anonymous

    I have the same question as Cameron (#18 and #46).
    I have not owned a primary residence for the last 3 yrs. If I purchase and move into a primary residence in 2009, I qualify for the first-time home buyers tax credit of up to $8000. If I sell this home within 3 yrs, I must pay back the tax credit.

    However, if I rent out this primary home within the first 3 yrs, must I also pay back the tax credit? If so, is the payback amount prorated for the fraction of 3 yrs it was my primary residence?

  145. Anonymous

    my 2008 income qualifies me for the 8k credit, however my 2009 income wont. can i buy anytime this year before dec 1, 2009 and simply amend my 2008 income to get the 8k? or do i have to buy and close escrow by a certain date to be able to use my 2008 income?

  146. Anonymous

    How long it takes for amendment for filing for 8000.00 1st home buyers credit. I closed on March 27th 2009. I mailed returns on March 29th. It took them 8 weeks to be able to tell me they received it. I just called yesterday and they are telling me my check is being mailed June 19th. So approx 10 weeks total waiting time. Just for those of you who want to know, don’t count on money to come to you fast from irs. If you are calling them to check on status you have to act like you are going to ask them a questions on how to prepare your taxes. I believe 1-800-829-1040 Option #1 then I think option #4. Don’t hold me to that! Good luck!

  147. Anonymous

    I would like to know if I am eligable to for the 8k credit. My Mother has the loan on the house we live in. She quit claimed deed the house to me in 2004. Though she claims all the tax credits/interest deduction for the house. In 2008 my husband and I took out a small loan against the house. I am now wanting to refi both loans into one. The loan in my moms name has a bal of 46k and the loan me and my husband have is 25k. The house is valued at 135k. Will the credit only be for the loan amount we finance, say 75k or the actual value of the house? Also, do we qualify for the credit based on this? TYIA

  148. Anonymous

    I e-filed with an accountant, on 4May,and chose direct deposit. I closed on 27May, and had by then received a letter from the IRS saying they had my return, and it was being reviewed. then they requested my Hud 1 form, after saying I was randomly chosen for a review. I faxed the Hud 1on the 28th. I called today and was told that they are processing return they received in March, and it will be 6-8 weeks before I receive my refund!!!

  149. Anonymous

    I filed already April 30th, for my 8000.00, and also i had a accountiant , but it would nice to have the money now. there is so many things i want to do with the house.

  150. Anonymous

    tabby you won’t get the credit until after you close. You will need to file an amended tax return. You have to close before you can do that. After you file it will take at least 8 weeks for them to show they received it and up to 16 weeks total for you to get the return. Trust me its a very slow process!

  151. Anonymous

    Quick question for all the people that already got there 8000.00 tax credit. How long did it take to get the money i’m closing on the 12th of june and i would love to have it before i close next friday. please commnet me back if you know

  152. Anonymous

    ok I am gettting somewhere now. I called irs friday. Its been 2 months since I mailed my amended return. They are telling me they have received it now but won’t tell me when I should get it in the mail. At least they got it.

  153. Anonymous

    My wife and I purchased a home in September 2008 from her dad at $110,000. The IRS instructions say that you cannot buy it from a parent and claim the First Time Homebuyers Tax Credit. If we file separate returns can I claim the deduction for 1/2 of the credit since I am not a blood relative of her dads?

  154. Anonymous

    I filed my amended return on March 27th. I am being told the same as above at least 12 weeks before I could be entered into the system. How nuts is that. Its like they throw you a bone and yank it away a little at a time. Geez

  155. Anonymous

    I filed my amended return for this credit on March 24, 2009. . .up until last week, it wasn’t even in the system that the IRS had rec’d it (I was worried). . .this week, I called (it’s been 8 wks today), and they told me it was being worked on, and that everything looked good, and things were rolling along. They didn’t have a specific date for me as to when the check would be sent out, all she would tell me, was by June 18 (12 weeks). . .or possibly sooner. Anyone know of how long AFTER your 1040x was being worked on, your check would be sent out. Also, if they mail a check on a friday, when should I expect the check in my mailbox?? I usually get DD, but since this was an amended return, that’s not an option.

  156. Anonymous

    I believe the rules are you can’t have owned a home in the last 3 years. Call the IRS-they can tell you for sure.
    Good luck to your sister 🙂

  157. Anonymous

    Asking for my sister. She owns a $14k mobile home and would like to get into a more permanent housing situation. She bought the mobile home 3.5 years ago.

    Will she not qualify for this credit because she has the mobile home?

  158. Anonymous

    I just wanted to add a comment for those who are wondering how long it takes to receive the tax credit. I mailed my amended 1040X and form 5405 on 3/20/09. Today is 5/12/09 and I still have not received my credit. I called the IRS today to find out the status and they said it could take up to 12 weeks for my paperwork to make it into the system before they can begin processing. The IRS rep said that they are extremely busy with all the amended returns that have been coming in and that it could take up to 16 weeks to get the credit. UGH!

  159. Anonymous

    I just closed on my house last week. I know that I qualify for the $8,000 1st time home buyer credit. Do I have to wait until next year’s tax season before I can get the credit, or is there a way I can get it now? Thanks!

  160. Anonymous

    Um no you won’t be getting anything, what part of CLOSING DATE don’t you understand. There is no credit for an ASSUMED CLOSING DATE. The IRS is going to request your HUD1 Statement and you’ll be SOL guaranteed. FRAUD!!!!!!!!!

  161. Anonymous

    Ummm…can anyone give me better news than Eddie or Sean?

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

    Thanks anyways guys -Dale

  162. Anonymous

    Can anyone tell me what would happen in the following scenario?

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

    Construction completion and subsequent closing: early September
    If my “Date acquired” is Sep 14 2009 will they wait to send my check or will they just reject it? Thanks, Dale

  163. Anonymous

    claudia to file your amend you use form 1040x and form 5405 you can either do it yourself or if you not clear on it go to the person who filed your taxes.

  164. Anonymous

    Claudia you need form 5405 and either 1040x or what ever 1040 you used and amended it. You can ask the IRS to send it to you, its easy or you can ask your preparer to do it.

  165. Anonymous

    I will close on the 19 of May,and i know that i can amend my taxes but how do i go about that? What forms do i use ? Do i go with who prepared my taxes or do i do it on my own i am confused!!!

  166. Anonymous

    Charlie if you already have filed your taxes now you have to amend your taxes to add the first time home buyers credit. Being that you close in 2009 you will get the 8,000 if your eligible but you have to first close on your hous because you have to have a closing date. Things can go wrong sometimes so make sure you wait until you close.

  167. Anonymous

    I am closing this week on my house in long Island Ny. Does this mean I can amend 2008 and get the 8.000 creit. i’m a bit confused!

  168. Anonymous

    About how long would it take to get back the first time buyers credit. It seems from other comments about 2 months give or take…anyone else recive it sooner?

  169. Anonymous

    Have anyone beside debi received there amended return for the first time home buyers credit besides Debi, and how long did yours take? I been waiting about 6 weeks.

  170. Anonymous

    Ok, we purchased a live in/work unit from a owner in Sept. or 2008. It had only been 2 years since we owned a house. However we will be getting a loan on the house this summer (thus being 3 years) and will build a house that we will actually live in (we did not live in this unit simply used it for work) this summer after the 3 year mark. While being built we are going to live in the live in/work unit! Will either of these properties be considered for this credit?

  171. Anonymous

    Wow that was a long time Debi. The only thing is you cant efile an amended return according to the conversation I had with the IRS, but if you are filing a orginal then you can e file it.

  172. Anonymous

    Hey fellow patient taxpayers,


    I was beginning to think it would never come.

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

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

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

    Good luck everyone,

  173. Anonymous

    You are not eligible, because you already own a home that you are selling. This credit is for FIRST TIME homebuyers. First time homebuyers are those who have not owned a home in the last three years.

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

  174. Anonymous

    After much research I am still not clear if I will be eligible for the $8,000 tax credit. My divorce will be final in May 09. I owned and have lived in a home with my ex husband that I am now selling to purchase another home. Do I qualify?
    I also read somewhere if i purchased it with another person who has never owned a home I would qualify-is that true?

  175. Anonymous

    There are income guidelines. If you meet the income guidelines, I believe you are eligible, as long as you have not owned a home in the prior 3 years. Good luck. I plan to pay my debt cards off as well.

  176. Anonymous

    I see no where that states you must purchase through any specific lender. I have thoroughly researched this credit to make sure I was eligible and as long as this “landlord” is not related to you – you should be fine.

    Note: Absolutely none of the paperwork I filled out for this credit asked my who my lender was. If I were you – I would log onto the IRS website, fill out the 5405 (and the 1040X if you are amending) then efile all of it. DONT mail it – that takes forever. Mailed mine Feb 10th and am still waiting.

  177. Anonymous

    The $10,000 credit is for new homes purchased in California. I know it doesn’t have the “First Time” requirement but I’m not sure if a new mobile home is acceptable. If you live in CA – check out that credit instead of the one discussed on this page. I know it is not a lump sum and is divided over the next three years with no payback on the credit – but that’s all I really know. Hope you get your new home and all the furnishings along with it.

  178. Anonymous

    Yes, you can file an amended return if you have already filed your regular one the same day as closing.

    Yes, it is valid in NYC

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

    Note: Amended returns take forever – still waiting for mine since April – but I paper returned because electronic was not available at the time.

  179. Anonymous

    Do you live in California? If so, there is a different tax credit that is for new home purchases. It’s for $10,000 divided over the next three years. May want to check into that one. There is no “First Time” stipulation for this credit.

  180. Anonymous

    Q#1 – Sorry, the credit if for “First Time Home Buyers”. If you currently own a home you wouldn’t qualify for the credit.

    Q#2 – If your son purchases from you – he would not qualify for the credit because the purchase cannot be from a relative. He may qualify if he purchased from someone else – assuming he meets all the other requirements.

  181. Anonymous

    Yes, but you need to file an amended return. Effective March 30, 2009 the IRS can receive the forms electronically. Log on to the IRS website. All necessary forms along with instructions can be found there.

  182. Anonymous

    I am a mortgage lender and have been asked the following by a customer:
    He is currently buying a home on contract. The house has not been deeded to him and would not be until the contract price has been paid in full. The contract is a recorded document. Since he is not in title to the home he is purchsing via contract, if he buys a new home to live in would he qualify for the tax credit?

  183. Anonymous

    I filed my amended return on Feb 10 for the Home Buyer Tax Credit (8000). I still haven’t received my credit. Has anyone actually received the credit from a mailed amended return?

  184. Anonymous

    My tax preparer did not inform me about the first time home buyer tax credit. I just learned about this while(for the first time) visiting your site. My situation is this: My husband and I bought the house in July,2008, for $222,400, now, it is worth $165,000. We did necessary improvements worth $10,000 made with our credit cards.
    That $7,500 tax credit will really help us pay our credit cards. What can I do so we can claim the tax credit now?..If there is nothing I can do, Can I still claim it for 2009?
    From this experience, I learned that I should do my research and not rely on somebody to know everything about their job(listen, tax preparer).

  185. Anonymous

    Can you please answer my two questions?
    1. My wife and I presently own a home, and we are building a new home this year. Can we get the 8,000 tax credit on the new home.

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

    Please let me know

  186. Anonymous

    I can’t give you an exact number on how many people are taking the tax credit, that are not eligible. I can tell you I know it is happening, and do not get discouraged,because I believe the IRS is flooded with these right now so they are processing the payments, and asking questions later. I know it seems unfair, but believe me, the IRS WILL find out one day, one way about people that received the money illegally,and they will have to pay it back, along with fines, and possible fraud charges, and jail time. If they mailed their return, that will be mail fraud. If they e-filed, they will have wire transfer charges. The IRS is not someone you want to cheat. Ask Wesley Snipes. They always find out.

  187. Anonymous

    We bought a junky $15,00 14×70 single wide on a rented lot in a trailer park 6 years ago when we were first married, and we still live in it. Reading the form it seems that we are now exempt from the credit and incentive to buy a house.

    A trailer house is titled like a car, and is taxed like personal property. You can qualify for FHA loans on a house if you already own a mobile. How then can the IRS exempt you from this credit on those grounds? I can’t seem to find anyone (including CPAs) that say anything but we don’t qualify on the basis of already owning a “primary residence” even though its just a trailer. We want to buy a house this year and consider ourselves first time homebuyers. Do we qualify or not?

  188. Anonymous

    How in the heck did a 19 year old opiate junky who dropped out of school and has never held a job longer than a week (and obviously hasn’t purchased a home) file for this tax credit and immediately walk away with $8,000 in his pocket!? He says that all of his buddies are doing it, too!

    How many people out there are committing this tax fraud and isn’t there any documentation that is required with the tax return to get this credit?

  189. Anonymous

    Did anyone ever answer JJ’s comment from March 17th? I have a similar situation. Thanks!

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

    Comment by JJ — Mar 17th 2009 @ 7:00 pm “

  190. Anonymous

    To clarify my last statement, I am talking about individuals who file an amended tax return along with the IRS 5405 form, not the individuals who adjust their W-4 withholding amount.

  191. Anonymous

    I am just wondering how anyone believes it is acceptable to get a tax credit on a home that you do not own yet. You have not acquired the propety until title is tranferred to you. Any number of things can happen to have a real estate contract or loan application fall through. I have heard so many people say that it is acceptable to use the tax credit for closing costs on the property you told the IRS that you have already acquired. It does not make sense to me at all. If there is information out there that confirms it is acceptable, will someone please direct me to it?

  192. Anonymous

    I’m going to be closing in mid may wondering if I can claim it right after closing. 2 is it valid in the state of new York 3 also is 2009 a credit or does it have 2 be paid back

  193. Anonymous

    Here is what I found for you. It looks like six weeks, but in my opinion could be longer because of all the first time homebuyers.The links won’t work, so here is the address I found the info on. You can cut and paste it if you would like to get to the link for check my status.

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

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

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

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

    The IRS will assist you in obtaining a replacement check for a refund check that is verified as lost or stolen.

  194. Anonymous

    Everything I find says if you file married filing seperate, you only receive $4,000. It’s good on so many levels, in my opinion, that you are putting the home in only your name, no offense intended on your husband. Back child support, along with Taxes and Student loans, never ever go away. After you get squared away in your new house, perhaps you could make payment arangements with Child Support and Taxes, and one day get rid of those.

  195. Anonymous

    Here is what I found regarding adjusting your W4. I don’t work, so I can’t explain it it to you any differently. It seems their (IRS)biggest concern is if you adjust your W4 to have less taxes taken out, then you don’t purchase and receive the credit, you are then responsible for any taxes owed, since you adjusted your withholdings.

    Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
    Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

    Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

    Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

    The National Council of State Housing Agencies (NCSHA) has compiled list of such programs.

  196. Anonymous

    Did yu file electronically, or paper? Did you do it yourself, or have someone file for you? I went to a tax professional, who did all of my paperwork, but hasn’t yet filed it, because I haven’t received word that the house is mine yet, and you have to have the address. She said if I filed elctronically, on a Wednesday before 4pm, I would have my money Friday of the next week, approximately 10 days.

  197. Anonymous

    Can any body tell me how long it’s taken to get the credit back, It’s been a while? Also can you tell me if you can check the status ” wheres my refund” and do you put $7,500, or the amount of your credit? Everytime I check it say’s ” incorrect info added”.

  198. Anonymous

    I filed my taxes married & separate. I am closing on my house next week and only in my name. My husband owes back child support and taxes. That’s why I didn’t file with him. I just read that if I filed married and separate that I can only claim half but the house and loan are only in my name. Is there any way that I can claim the full tax credit?

  199. Anonymous

    Addendum to #94

    Also, if I receive a portion of the credit via adjustment to my W-4, can I apply for the remainder of credit after closing date?

  200. Anonymous

    I read on the IRS website that if you are a prospective home buyer you can receive the credit now by making adjustment to your W-4, but I’m not sure how to do this. Is there some kind of formula to use in filling it out for this credit? I cannot find any specifics on how to do this.

  201. Anonymous

    What defines a “main house” and how is this indicated to the IRS? I just purchased a home this month, have not yet filed my taxes for 2008 and income-wise would qualify for the tax credit, however I can’t move into the home just yet although hopefully will within a few months. Does this mean it is not my “main home”? It will be my home from the 36 month period beginning on the purchase date (I don’t plan on selling it within the next few years), I’m just not sure how long after the purchase date I will actually physically move into the place. Would I qualify, or not?


  202. Anonymous

    Please let me know how to get the $8,000 credit/purchase a home for the first time…. Please e mail me at the above address thanks Mike

  203. Anonymous

    My Husband and I closed on our house March 31st. We started to file our taxes Sunday, March 29th on Turbo Tax. We noticed that Turbo Tax had not finished updating the new 5045 form for the 2009 credit and we saved it for later. As of Saturday April 4 the forms were ready to be filed. My question is, at closing our lender said that we would have to send in a copy of our HUD setllement paper(the first thing you sign at closing that they tell you to NEVER loose). I had not heard, been told, or read that you had to send of copy of that in with your file aka you couldn’t efile your return. Is the efile system updated so you can efile now and do you acutally have to send a copy of that form and if so can you do that and still efile the paperwork?

  204. Anonymous

    I’m afraid you are correct. You are not eligible for the credit if purchasing a home from a relative.
    Here is a list taken from that states who cannot take the credit. You are probably getting a better deal buying from grandpa than a stranger-so that may be one way to look at it so you don’t get down. Imagine how quickly 8,000 will vanish, opposed to how much you are saving off of the purcase price.

    Q. Who cannot take the credit?

    A. If any of the following describe you, you cannot take the credit, even if you buy a main home:

    Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.

    You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

    You stop using your home as your main home.

    You sell your home before the end of the year.

    You are a nonresident alien.

    You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year.

    Your home financing comes from tax-exempt mortgage revenue bonds.

    You owned another main home at any time during the three years prior to the date of purchase. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another main home at any time from July 2, 2005, through July 1, 2008.

  205. Anonymous

    My husband and I are planning on purchasing the home that we have been renting for the past year . However the home is owned by his grandfather so are we not eligible for the tax credit.

  206. Anonymous

    You are welcome Chasen. Perhaps if you call the IRS, since you weren’t completely at fault in my opinion, meaning, they gave you the credit right? Maybe if you call them and explain that you didn’t understand the credit-(they should understand that as many people don’t understand it),tell them you received it but you now realize this was an error,and you wish to return it as you now realize you don’t qualify,and you don’t want to be penalized.I think they would be able to work with you on that. Things always work out better if you take a proactive approach, rather than waiting for them to come to you. Believe me, once they start attaching fees and penalties, it’s not going to be good. Plus, they may think you were intentionally trying to defraud them, if you don’t try to give it back.I wish you the best 🙂

  207. Anonymous

    Thank you for replying Kelly. I was thinking about returning it due to the fact that i do not have property yet and i dont want to get penalized..I didnt understand the rules of the credit. I thought u could get the money and then buy property..Thank you again

  208. Anonymous

    I prepared my taxes yesterday. I made an offer on a house on Monday, but it has not been accepted yet, therefore my tax preparer hasn’t and won’t submit the forms until I actually receive word my offer was approved.You have some choices if you have not already received the money. You can file your taxes normally, not claiming the credit, and when you do buy a house, amend your return. Your other option is to file an extension, which gives you until October 15th to file your taxes, without penalty, and if you purchase a condo before then, you can file your taxes, and claim the credit at that time.I was told this yesterday by my tax preparer.

  209. Anonymous

    Did you put an address of a property on your 5405, or how exactly did you claim the credit. I hate to sound like a negative Nelly, but you may be penalized, or perhaps have some fraud charges. If you give it back, what wil be your reason? I mean, are you going to tell the IRS your deal didn’t go through, or you changed your mind? Perhaps you should call a tax professional.The IRS is no joke, so please do not let this go unresolved.It doesn’t matter if they don’t catch it for years they will catch it, and fine you, and probably charge you, so please remedy it before they come to you.

  210. Anonymous

    i am going to buy a house next month, however, if i don’t have any income for 2008 and 2009, therefore i don’t need to file the tax, am i still able to receive these 8000 amount.

  211. Anonymous

    what do i do? i applied for the tax credit and received it, YET i dont own a property. should i give the money back or get a condo before December??????

  212. Anonymous

    RE:Joyce comment #68 SSDI
    I also receive SSDI, so I called the IRS . I was told if you qualify for the credit as far as not buying a home in the past 3 yrs, meet income guidleines, then you would file a return with your ssdi $amt on the return, just like you did when you filed for the stimulus payment last year. Did you file last year for the simulus check? In other words, yes, you do qualify for the credit, so enjoy, and go pick out some new furniture.

  213. Anonymous

    my husband and i formed an LLC with a first time buyer in order to help her buy a home.
    our income is over $125,000; hers is not.
    she has never owned before; we currently own.
    we put more money into the LLC than she did to purchase the home.
    the LLC paid ‘all cash’ for the home.

    does the LLC qualify for the $8000 tax credit?

  214. Anonymous

    Thank you for replying. Im worried becaused I already filed the taxes and my tax preparer said i was approved for $8000. So what if i take the money and buy a house later? Will i be considered doing tax fraud?

  215. Anonymous

    Chasen that would be nice. The bill doesn’t allow for that to happen, but if you get a loan you can get it after your closen date I beleive as long as its before june or july, quite an incentive, but remember you have to be on your first house withen the last three years and must use it as your primary resident.

  216. Anonymous

    Scott this is true. If you go to the irs website you can get the amendment form. Scott I have a friend that went to liberty tax and they did it for him for a fee.

  217. Anonymous

    I recently purchased my first home and my wife and I qualify for the 2009 first time home buyers tax credit. We filed early this year and have received our returns already. I would like to claim the tax credit as soon as possible. I read somewhere about getting an ammendment to my already filed taxes. Is this correct and how do I go about this?

  218. Anonymous

    I filed my first time homebuyers credit amendment for my home I purchased in 2008. Turbo Tax did it and I e filed it. My amendent was accepted and it showed the amount that I will get back, but as I read that you cannot efile it. So my question is did it tell me I was accepted but later on I will find out it really wasn’t? If it was really accepted, its been over two weeks, how long before I receive my refund?

  219. Anonymous

    To : #65

    Our ‘E-Fillable Forms’ attempt to file was also ‘Rejected’ due to the form not accepting more than $7500 for the first time homebuyer credit (we purchased after Dec 31, 2008 so are eligible for the $8000 amount).

    I also tried to file on a commercial site that cost about $10 to file both fed and state, but their system could not accept the new amount either. I have a printed copy now, and I’m tired of entering the same information into multiple online systems,so it will be paper for us…

    Please excuse or ignore the following rant, but this got me thinking:

    This is a great informational website, and I’m glad it’s here, but has anyone noticed that the number and complexity of filing options has increased ridiculously since online filing has become available?

    It probably costs more of our tax dollars to administer and update the dozens of IRS vendors than it would to create one free system that works for everyone.

    Why don’t we DEMAND that the Fed and states get it together, and make a system that is not bureaucratic joke instead of clogging up the net with questions and issues we have about THEIR dumb system to each other. These are all issues that should have been answered by the IRS anyway.
    I urge you to talk about, and voice your opinions to policy makers.
    I will.

  220. Anonymous

    Husband and I are both on Social Security Disability and do not have “taxable income”. I am expecting a small inheritance in next two or three months and would like to purchase a decent Mobile Home then. I bought this small, old Mobile Home (ready for the garbage heap) in 1999. If I were able to purchase a Mobile Home for about $30,000 or so in next three months would we qualify for this 10% stimulus credit? How would we apply, not owing income tax this year or last? We are very low income and could only purchase a Mobile Home (for cash) if and when I receive this small inheritance, Otherwise, we can’t. The credit would help us furnish the home, whereas we’d have no money left over to furnish it. This old trailer I have is bearly liveable, and I must pay lot space rent and for liability insurance just to live here. If we could buy a decent mobile home (we need a larger one, as this old thing is only 12′ x 46″ and my husband now requires a lot of equipment due to his disabilities and no room left to live in here! ) . Can this credit help poor, disabled folk like us with very low income or would this “old junker trailer” I bought in 1999 disqualify us?? If we qualify, how would we apply?? Can you help us??? Than you

  221. Anonymous

    I have a question. My husband and I are looking to buy a house through an owner will carry deal. we wouldn’t actually purchase through a bank the the owner supplies the contract for us and we both sign it, including him. We then start making our payments to him rather than the bank. Can we still claim the 8000 ta credit if we do this?

  222. Anonymous

    I will be closing on my house in 3 weeks. The debate now is should I go ahead and file my amended return now to get the process started or do I need to wait to send it in until the close date.

  223. Anonymous

    Whoa – the $8,000 credit can’t be had when you e-file! E-file with the credit included and the return is REJECTED at this time! IRS is unsure when or how their software will be corrected to handle this line item even though the tax return software companies have been updated to include it. A call to the IRS confirmed & they advised us a paper return be sent in. No mention of this snafu on the website though…
    Home purchased Jan 2009

  224. Anonymous

    I have a question. My husband and I are looking to buy a house through an owner will carry deal. we wouldn’t actually purchase through a bank the the owner supplies the contract for us and we both sign it, including him. We then start making our payments to him rather than the bank. Can we still claim the 8000 ta credit if we do this?

  225. Anonymous

    You have to wait until you have *closed* on the house before you can claim the credit. Two options, file your taxes now and amend them later to get the credit or wait to file until after your closing (assuming its before april 15th).
    Also you cannot efile yet (turbo tax etc) because the irs hasn’t updated it’s rejection codes to accept the 8,000 tax credit. I was informed by my efile provider I can file a paper tax return or wait until they fix this at the end of the month.
    Hope this helps.

  226. Anonymous

    I’m a bit confused myself… A lot of people have said that they got their tax credit before closing. Form 5405 asks for the acquired date of the property. Is the IRS accepting future dates for this? In other words, I am closing on April 10th, can I fill this out with April 10th as purchase date even though it has not happened yet? Or do I use the date the contract was submitted to the county? (problem is that this is not the acquired date). Please clarify. Thank you!

  227. Anonymous

    I’m confused. Tax form 5405 has a box to check if you are going to claim the credit this year for a home purchased before 12/01/2009. If my husband and I are planning on buying a home this year and want to use the credit to assist with either the down payment or closing costs, can we request the credit now? If not, what is the cut-off date for amending our 2008 taxes? For example, if we file our taxes now then purchase a home in July, can we file for the credit then or do we have to wait until 2010 to file for the credit?

  228. Anonymous

    I plan on buying a house this year (2009) to receive the tax credit. I have already filed my taxes, I do know that there is a form 5405 that you can fill out. Is this the correct form to fill out? If I fill this form out how long will it be before I receive my tax credit?

  229. Anonymous

    My fiance is going to be buying a home in May 2009 from my parents (we won’t be getting married until 2010). He will be ‘renting to own’, so making payments directly instead of taking out a loan–would he still qualify for the $8000 credit or will he need an actual loan?

  230. Anonymous

    Can I claim $4000 and my spouse claim the other $4000 if we file separately? Or I have to file jointly to claim the full $8000 if married? Thanks.

  231. Anonymous

    Ok maybe im not understanding. We already filed out taxes and recieved the 7500 but our house closes at the end of this month. Do we get the difference of the 8000 or is this something separate? Also since we close this year does it mean we dont have to repay the money?

  232. Anonymous

    I bought my current residence in July 2003. Got married in August 2007. My husband is not on the deed or loan. He has not owned a residence since 2005. We are upgrading to a larger home this month. Can we claim the credit or 1/2 the credit based on his first time homebuyer status? thanks.

  233. Anonymous

    I don’t beleive you have to even have a home picked out yet – as long as you are planning on buying one this year, they will give it to you. If you claim it, and you don’t end up buying a home, then you will need to return the cash… I’m ammending my tax return as soon as the tax cut update comes out and I have not yet closed…

    Good luck!
    Get your money!

  234. Anonymous

    I am currently waiting on the loan to be closed out and receive my first Buy home in the end of March. Can I claim credit for the 2008 tax return? do I have to wait after receive the home?

    Thank you

  235. Anonymous

    i bought a house in july last year and I already filed my 2008 tax return but i did not attached form 5405.. can i use a 1040x to clain the first time home buyer credit?

    Please help me!

  236. Anonymous

    Would a displaced homemaker qualify as a first time home buyer. I have buyers that owned homes with their husbands but in the divorce the husbands were awarded the home. In most situations they are still considered a first time home buyer because they are displaced homemakers at that point, but I have not seen anything about that with this credit.



  237. Anonymous

    Hi there,

    We are purchasing a house with names of my husband and I this march in 2009.

    But I am resident -alien but he is not yet. He has only tax id.

    Then, can I claim the tax credit, $8000?

  238. Anonymous

    Great Insight.
    I have two questions, I will eventially go to a tax pro, but I wanted to see what others thought:
    1) I filed my taxes online (turbotax) and we are closing on a house in March. Can we send the 5045 manually or go through the websie? (probably something I should ask TurboTax)

    2) is this a flat $8000 refund (or 10%) or if you received, lets say, $1000 back from the government, do you only get an additional $7000? As in, only up to $8000.

    Thanks for any replies

  239. Anonymous


    I’m assuming you would know the answer to this. If I were to buy a house this year and rent it out for a year (no income…just to pay off the mortgage monthly), would I still be eligible for the tax credit if I LIVED in the house for at least 3 years following. So, for example…say I bought the house next month, rented it out for 12 months, then lived in it for 36 months over a 48 month period? Would that work or do you have to live in it as soon as you buy the house to be eligible? Thank you.

  240. Anonymous

    @Erica – Wow, I can’t believe you actually said “if you have a purchase sales agreement, but have not yet closed, yes you can get the money before closing if you’re timing is right.”

    NO, NO, NO. Absolutely not!! Where in the world did you get that crap from? Seriously, did you just make that up? Didn’t you think it was strange there wasn’t a place on the 5405 to put the “future purchase date”? It only had a place for “purchased date” (past tense). The instructions say “Enter the date you acquired the home” not “might acquire the home” or “plan to acquire the home”. Just look where that thinking landed Indiecn. How does he explain how he filled in the wrong date and the wrong address on the 5405? Think that might get flagged?

    Also, the reason someone might wait to pay back the 7500 is because inflation eats away at the money you owe at around 3% a year. According to my math (hope I did it right), you save $360 if you wait 2 years to start repayment (assuming a constant 3% inflation a year for 15 vs 17 years).

    Stop giving out tax advice. You are going to hurt someone.

  241. Anonymous

    Oops, scratch the part where I said “and move in as your primary residence”. For home buyers, it is only when you bought the house that matters. If you built the house, then what matters is when you move in.

  242. Anonymous


    You can NOT claim the 7,500 or 8,000 credit before you buy the house and move in as your primary residence. If you do, you will be committing TAX FRAUD. Remember, you can always get an extension to file, or claim it in an amended return later in 2008, or claim it in 2009. Please, don’t follow the example of people above – Indiecn, Erica, Meg, Paul.

    If you have made this mistake, take care of this immediately. Don’t wait for Erica to do her “research”. Hopefully, the IRS won’t assess penalties or interest if you pay the money back now. You should seriously consider consulting with an accountant and/or tax attorney. And for god’s sake, stop talking about it. The internet is not anonymous. A whistle blower can get a reward of between 15% to 30% of the collected proceeds under the Tax Relief Act of 2006.

    People, get some real tax advice from professionals. Don’t trust me or anyone here. If a professional screws you at least you have some legal recourse. H&R Block for instance, will pay for interest and penalties that come from their mistakes in filing your return.

    These are large sums of money and the IRS will come calling eventually.

  243. Anonymous

    I should probably be clear in all of this by making sure everyone understands that these amounts are UP TO $7,500 for 08 and $8,000 for 09. As long as you purchased your house for more than $75,000 in 08 and more than $80,000 in 09, you’ll get the full amount. Otherwise, you’ll get 10% of the purchase price, which means if your house was only $40,000 (what part of the country do you live in?! Maybe I need to move there!) then you will only get $4,000. Make sense?

    The unstable economy is exactly why I think it’s smart to start paying back the $7,500 now (instead of waiting until 2010). Who knows if we’ll have jobs by then? At least you know you can spare the $10/week now.

  244. Anonymous

    Erica, your the best! Mr. Obama just gave us a $13 a week tax cut, I could give back $10 of it and still be ahead of the game with $7500 in the bank. As long as the paychecks keep coming. Not necessarily a sure thing these days.

  245. Anonymous

    Two things:
    One thing I forgot to address is that yes, Joanne, the $7,500 will have to be paid back over 15 years (the new 2009 $8,000 does not though). You can fill out a new W4 from your employer that asks to have an additional $21 per paycheck (if you get paid twice a month for example) withheld. Just divide the $500 by however many paychecks you get a year. If you bought the house with a spouse and filed jointly, you can each have half of that withheld. You don’t actually have to start doing this until 2010 though; however, I’m not sure why you would wait.
    Second, this is for Jennifer, you are correct. If you owe $1,000 you will get $7,000, none of which you will have to pay back.

  246. Anonymous

    Is the 2009 $8,000 a tax credit or a refund? Last year we owed $1,000 in taxes, we just bought a house in 2009 and plan to use the new $8,000 credit..does this mean we will actually be getting a check for $7,000 ($8,000 minus the $1,000 we probably owe)?

  247. Anonymous

    We moved into the house June 28, 2009. How difficult is it to file an amended return? As I understand it, the $7500 has to be paid back $500 per year for 15 years. Any chance the current administration will forgive these loans?

  248. Anonymous


    I also filed for and recieved the $7500 tax credit but do not close until March 11. As you stated I was able to do so because I knew the closing date and purchase price and was willing to take the risk. Now, I am wondering what to do about the $8000 payback-free credit that technically I’m elligible for. I’m guessing an amendment is all that is needed. I’m looking forward to your research and answer Erica.

  249. Anonymous

    I am currently looking into this as I am in the same position. I believe you will need to file an amended return, but as soon as I find out for sure, I will post again.

  250. Anonymous

    You said you built a home in 2008, when in 2008 was the move-in date? This will determine whether or not you are eligible for the $7,500 tax credit. But unless the house wasn’t done until 2009, you cannot get the $8,000. It shouldn’t matter if you had a mortgage or not. For building a home, the purchase date is considered the date you moved in.

  251. Anonymous

    We are buying a home this year in 2009. We have already claimed the $7500 tax credit. As far as I understand the repayment of this is amended “automatically” right? Or do we have to file an amended 1040? We’ve already recieved the funds and don’t really know what to do at this point. I haven’t filed my taxes yet and am second on the mortgage (we’re not married yet so we’re filing single) can I just claim the other $500 on my return? Or will we need to file an amended 2008 return altogether? How does that work?

  252. Anonymous

    Question, we built a home in 2008. We paid cash and did not get a mortgage. I would be willing to get a mortgage to be able to receive the $8000.00 tax credit. Will my mortgage paperwork work as a purchase date?

  253. Anonymous

    I forgot to say above that you also have to know the purchase price of the home when filing for the first-time homebuyers credit. So, as I said before, you have to be close enough to closing that you have all of this information in order to file for the credit. Otherwise, you have to file an amended form later.

  254. Anonymous

    To KZM:

    A) You will not get the $7,500 2008 tax credit, if you buy a house between Jan. 1, 2009 and Dec. 31, 2009, you will only get the $8000 tax credit (which is better anyway)

    B) You have to know the address and closing date of the house you are purchasing in order to fill out the form. Which means, if you have a purchase sales agreement, but have not yet closed, yes you can get the money before closing if you’re timing is right. If you aren’t buying a house yet (don’t have an address or closing date to include in the form) then you won’t be able to complete the form and get the credit. It sounds like you should file an amended form for the first-time homebuyers credit later in the year (when you buy a house) and just do your 1040 now.

    Sorry, I don’t know the answer to your question C.

  255. Anonymous

    To LEE, TIM, and RICK: We have not yet closed on the house we are building, but have a purchase sale agreement and paid our earnest money. We filed for the first-time homebuyers credit by filling out the form with our future home’s address and the approximate closing date (we don’t know the absolute date since we’re building). We received the money with the rest of our refund and will now use it toward the down payment/closing costs. Hope this helps!

  256. Anonymous

    Jason – Thanks for the reply…that is agreat thought (we will be receiving money) and I am not sure why it didn’t even cross my mind to go with an amendment. Thanks for the input!

  257. Anonymous

    We will be putting a contract on a house in the next week or so. Does anyone know the month you have to close by in order to ammend your ’08 taxes? I heard April or June but no one knows for sure.

  258. Anonymous

    Chris + Jason, >> >> ??

    I owe money on 2008 taxes (about 5k) but have not found a house to buy yet.

    A) If I file an extension and buy a home before July 1, I can get the $7,500 2008 tax credit PLUS the 2009 tax credit all received this year?

    B) This money will be received as credit BEFORE closing? How does that work? What happens if I don’t close? Pay it back?

    C) In order to close on a property, can I have simply filed my taxes but not have paid yet. Can you file your taxes and just get extension on paying the money you owe IRS? I am 24 and this is my first year as self-employed so sorry for the green questions people . . .


  259. Anonymous

    Do you owe taxes or will you be getting a refund (before the$8,000 credit)? We’re in the same situation as you, so we filed our taxes, and received our refund already to help with closing costs, etc. I have an amendment all filled out along with the form 5405, so as soon as we close, I’ll send that in for the other $8,000 credit. If you owe money, then I would guess the extension would be the better route…

  260. Anonymous

    If I recieve this 8000$ credit will I get my normal tax return this year. Also will I be able to recieve it if I rent a bedroom out in the house I buy. It would still be considered my primary residents so it wouldn’t be a rental property.

  261. Anonymous

    Great coverage of this credit…it has been very helpful. One thing I have not been able to find is any commentary on filing an extension so one can buy a home in May for instance and still claim it on their 2008 tax return… My wife and I are in this situation (working through a short sale) and do not expect to close until the late April to May time frame. I am assuming I can file an extension and simply make the claim once we close…any input on this?

  262. Anonymous

    I will be making $80,000-$85,000 this year.

    Does anyone know what the sliding scale is exactly? How much less do I get if I am making $80,000 or $85,000 versus someone making <$75,000.

  263. Anonymous

    KZM asks: “I am self-employed and have not filed for quarterly taxes (just completed first year as BizOwnr). I am pre-qual’d FHA. I owe about 5k in taxes, if I filed for an extension, would I be extending my need to pay those taxes and still have a completed tax return to show my lender or would I need to pay my tax liability first, then close on a house and receive the tax credit.

    My idea is that if I can not pay the taxes, but still show the returns to the lender, then take the credit at close, I will have ZERO tax liability, and I can take the money I’ve escrowed for taxes and put to reduce debts and reduce debt-to-income ratio, thus affording me MORE HOUSE. What I qualify for right now is slightly less than what I am looking for / need.


    ANY HELP PLZ ???

  264. Anonymous

    I have the same question as others. We Recently went under contract on Monday. I know that we qualify for the rebate, but the question is can we use this money at time of colosing towards our down payment or do we have to recieve it next year on our taxes or even this year if we are one of those who have not done there taxes this year. Wondering how to move my money around in order to close without any problems in the next 30.

  265. Anonymous

    I closed on my first house Dec 17, 2008 (wanted to move in over Christmas)…wish I would have waited another week or so to get the “true” tax credit. I understand that its meant to provoke future buyers, but it would also be good to ensure that ones that just purchased stay afloat. Do you think there is “any” chance that they’ll amend it and have it accept all new purchases since April 8, 2008? Also, if filing “married filing separate”, do both spouses have to claim the credit? The loan/title is in my name only, thus my husband doesn’t want to claim anything on his return for 2008. Is this possible?

  266. Anonymous

    I’m curious about Lee’s Question “Can I apply for the $8,000 credit now if I have a house under contract (earnest money contract)? Closing is to take place in approximately 25 days.”

    I’m in the same situation. Anyone know?

  267. Anonymous

    The question below is from in the FAQs section.

    What types of homes will qualify for the tax credit?
    Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

    From my understanding, under the definition of the principal residence under the capital gain tax exclusion, I could buy and house and rent it out for a year or two, live in it for 3 years after renting it, and I’d still be eligible. So, say out of 5 years, I rented it for 2 years, lived in it for 3 years … or out of 4 years, rented it for one year, lived in it for 3 years, would I have to pay back the tax credit?

    Read the Washington post article I linked. It explains the definition of “principal residence” under capital gain tax exclusion.

    Hopefully that’s not too confusing, but I’d appreciate some feedback. I know in the explanation on this site it said, “36 months beginning from the date of purchase”, but according to the Washington Times article, this wouldn’t be correct.

  268. Anonymous

    My son used 1040EZ form for federal. He bought a home on 1/23/09. He wants to file an amended form for the $8,000 credit. Does he have to file a 1040 amended form instead of an amended 1040 EZ form to get the credit. If he can use the 1040 EZ form, on what line does the credit go?


  269. Anonymous

    The IRS has amended the tax form but I am being told the credit has not actually been implemented yet. I am very frustrated…..using a tax professional office for the first time and they do not even know what is going on

  270. Anonymous

    And following the logic of #14:
    I am in contract to buy property A, filed for the $8000 based on the address of property A. Got the money, but the deal fell thru.

    Instead, I ended up buying property B (different address) before Dec 1, 2009. Do I have to fill out any additional forms to correct the address? Ie. How do they track that I own the property for at least 3 yrs?

  271. Anonymous


    As far as I can tell from the 5405 instructions, it is only the 10% on the purchase price.


    Yes, it is refundable.

    Now for my question: I want use Free File Fillable Forms (free e-filing) for my return, and I have everything filled in. However, the 5405 hasn’t been updated. Should I
    A) Wait however long it takes to for them to update the form
    B) Just fill in $8000 on the old form and hope the IRS accepts it
    C) Just print out the forms with the new 5405 and mail everything in instead.

    Any input would be appreciated.

  272. Anonymous

    Is this tax credit refundable? If I have zero federal income tax liability, will I receive a check for 8000 dollars? Or do I actually need 8000 in tax liability to get the full amount? Thanks.

  273. Anonymous

    If I by a Fixer upper house for $40,000 and I put another $40,000 into it, will i get the full $8,000 credit? Or is it just 10 % of the initial purchase value?


  274. Anonymous

    Any advice is appreciated –

    I owned a condo in Dallas from 2003 until April 25, 2006.

    My dad and I are on the contract.

    I got married January 14, 2006 and we moved to an apartment on Feb 11, 2006.

    My condo closed on April 25, 2006.

    My wife and I have rented from February 2006 until next month (March 2009) when we close on a home on March 5, 2009.

    Since I was out of my condo in February but it did not sell until April – is it not considered a “Main Home” from the date we moved out until the date it sold?

    Can we claim this tax credit?

    Who would know?


  275. Anonymous

    The purpose is to get people to buy houses in a recession, yet the recession has been here for some time now. Lots of people not able to take advantage of these programs.

    Still think they shouldn’t have done either of these. Now that you get $8k free, what is to stop you from once again buying too much house or instead of investing back into the home and/or other positive things? This will probably just go to buying things they probably a)don’t need b)can’t afford.

    oh well, just another day.

  276. Anonymous

    In response to #6

    You can not claim the credit NOW since you have NOT purchased a house. If you do purchase a house in 2009 you can qualify based upon your 2008 earnings. I believe you also would be able to amend your 2008 return to get the money prior to filing your 2009 return

  277. Anonymous

    Can I claim this credit now for my 2008 return though I haven’t bought a house yet but will within 6 months from now? My situation now would allow me to recieve the full amount though next year I will have earned too much to qualify.

  278. Anonymous

    I get that. Hopefully I don’t have to be where I am for more than 6 or 7 yrs. Job is stable and I’m earning 5% on the 7500$ in my checking acct . I have some other questions I’d like to ask. I’ll send in an email maybe u or some of ur readers have some ideas what to do to maximize my profits

  279. n double l: Not much to clarify here. It’s exactly what I stated above (I took the info from the IRS). I’m guessing that they didn’t amend the 2008 requirement because those people have already bought. It’s not a “big screw you”, but rather a calculated expenditure of money. You already bought, so there’s no point in rewarding you. This is intended to get people who *haven’t* bought to go out and do so. I’m not saying it’s fair, just explaining why it’s not backdated to 2008. Of course, that begs the question of why they bothered to extend it back to Jan 1 (instead of making it effective upon signing) as the same argument holds for people who already bought in early 2009.

  280. Anonymous

    Can you clarify for me? For 2008 buyers, its only 7500$?
    Does anyone have any idea why they didnt amend the 2008 requirement to repay. seems like a redundant attempt to stimulate but a big screw you to the folks who bought last yr

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