First Time Home Buyer Tax Credit

There has been a lot of talk (and confusion) about the economic stimulus bill and what it means to home buyers. Who qualifies? What year can I claim the credit? How much of a refund would I get back? What are the criteria to receive the credit? So I'm going to attempt to answer the most common questions about the bill. Keep in mind, I am NOT a tax professional or accountant and always recommend when it comes to your taxes to seek the advice of an accredited tax professional.

That being said, the bill states that first time home buyers can claim a tax credit worth $8,000 OR 10% of the home's value, whichever amount is less. So, if you bought a condominium for $65,000, your tax credit under the bill would be $6,500, not $8,000.


In order to qualify for the credit, the home purchase must be made between January 1st and November 30th of 2009 (so if you buy a home on December 1, 2009 you are not eligible). In addition, there are income restrictions as well. To qualify, a single person must make less than $75,000 a year. Married couples must make under $150,000 a year. However, higher income buyers may receive a partial credit. You must also live in the house purchased for at least three years or you will be required to pay back the credit. The property being purchased can not be owned by a close relative like a parent, grandparent or one of your children. The definition in bill for a first time home buyer is anyone that has not owned a home in the last three years.

Tax Filing

The credit can be claimed on your 2008 or 2009 income taxes. Now as I said you can claim the credit on your 2008 tax filing. If you have already filed them, you can file an amended return to claim the credit if you wish to do so. Based on the feeback we've been getting, the process takes about 12 weeks. Another great thing about the credit it that it is fully refundable, so even if your total tax bill (refund) is less than $8,000 (and you qualify for that amount of a credit), you would still receive the full $8,000 back plus the amount you had overpaid.

For example, John's taxes showed that he had paid $5,000 in taxes over the year. He filed his return and he actually only owed $3,000 in taxes. Normally he would have received a refund of $2,000. But under this bill, he would receive the full $10,000 instead! To claim the credit on your taxes is just a matter of filling out the form, without any additional paperwork involved.

This is a simplified breakdown of the economic stimulus bill. I highly recommend consulting a professional tax service regarding your taxes. You can download the tax form here:

Thank you for reading our real estate blog and feel free to contact us for all of your Las Vegas NV real estate needs.  



Hi! Can you please let me

Hi! Can you please let me know what number yo had called?

Thanks so much!

I've been waiting 10 months.

I've been waiting 10 months. just so you are prepared.

home buyer credit

I originaly sent in amended 2008 tax form back in september 2009..I have sent the IRS everything that they have asked of me.the last letttttter I received from them said I should have something by June 28,2010...still nothing..I cal all the time..people are nice but same old double will be soon...why so long?


So we built a home (started in March 09 and completed in Oct 09) on land that we purchased in 2006. We purchased the 5 acres with no structure on the property, whatsoever. Upon completion and receiving our certificate of occupancy, we took our paperwork to our CPA to file our FTHB credit in December of 09. He chose to amend our 08 taxes as he thought it would be the fastest way. My husband and I have never owned a home before, we have rented since we got married in 2006. March came, and we received a letter stating they need more paperwork proving we live at the residence and stating that they need the same paperwork we originally sent. After compiling EVERYTHING, we sent it all certified and faxed the documents to be sure they got them. We included our building contract, settlement statement, first mortgage payment, utility bills, copy of drivers license showing our address, etc. So every month, we would get a letter stating they have not had time to review our claim and they needed 30 more days. Well today got a letter stating that they declined our claim for the FTHB credit because their records indicate that we remodeled (we built ground up) not a new construction, and that we lived there since 2001. In 2001, we were both in high school living with our parents. They stated we had thirty days to dispute. I contacted the IRS to ask where THEY got their info from and what we could possibly send them to prove otherwise. The representative pretty much said he didn't know where they got their info from or how to prove otherwise, but be sure I send everything within 30 days!! ARE YOU KIDDING ME??

Finally! I posted back in

I posted back in April about my dealings with the IRS. I amended my return in October 2009 and received my check July 2010. I can't wait to pay the taxes on the stupid interest.

Still Waiting...

We purchased our home in Oct. 2009, and filed all the necessary paper work in Feb. 2010... We are still waiting! This is ridiculous. It is so convenient for them to "lose" all of our paperwork just so they dont have to pay us our money that was promised!

2009 tax refund

I closed on my home January 4. Filed my taxes first week of February. I mailed them. They requested information. I sent it. They said they hadn't received any information and I owned them $1,0038. I resent them all the information June 18. I have the confirmation they received it. Irs site said last week I can expect my refund before July 27th. Today the website said August 17th! It has been almost 6 months since I filed my taxes!

Still waiting 8 months and just got another 30 wait notice

Sounds like a lot of us in the same boat. Does party affiliation count? If so, i'm screwed royal, wait already been. Waiting to smell the second hand smoke from the IRS. They wouldn't hesitate taking "their money" out of my paycheck, wait already do. I'm paying for my own rebate. Oh well gotta laugh or it would tick me off to no end. Mailed my state rep for some moral support "roflao". Many blessings to all!!!

OK = rolling on floor laughing axx off


I amended my 2009 taxes to get my first time home buyer tax credit of $8,000, sent it on May 28th. I called every monday, starting June 21st, to validate that IRS actually received my amended tax return. I read the instructions for the 5040 and 1040X paper work and sent in my HUD settlement statement and my closing papers. Every week i called IRS said that they dont see that they received my papers yet, but it could take up to 12 weeks just to recognized that they received the amended return. They update their systems on the weekend, so best time to call is the beginning of the week.
Well finally, today, i called and they said my papers were received and PROCESSED last week and their were no issues and my check should be on its way, as long as i didnt owe any money (which i dont). I cant wait! They said it may take up to 2 weeks to get the mailed check. The checks are issued on Fridays, so based on a 2-4 day mailing time, i should get the check either middle of next week or week after! Cant wait!
My Timeline:
5/28/10 - closed on house and sent in 5040, 1040X, HUD settlement stmt, Closing Papers
7/6/10 - IRS stated they received and processed my amended tax return for HB credit last week and check should be in the mail this friday.

I'll let you know when i get the check, see how long it takes to get to me!

So theres hope! IRS said because the April 15th Tax Rush is slowing down, the Homebuyer Tax Credits are starting to be processed a little faster.

Home Buyers Credit

At least you have a promising outlook. I filed my taxes 2/26/2010 at which time it stated on the IRS website that I would receive my refund twelve weeks from my filing date. Well her it is 7/23/2010 and 5 letters late in which the first one asked for my hund settlement papers the other one asked for proof of residence via several different proofs of address and then finally one that stated they are review my document and should have an answer within 45 days from receipt of my proofs of residency. 45 days later I received a letter that they will have an answer for me in another 30 days. There must be something that we taxpayers can do to force them to make a decision to pay us our money.

IRS said they processed my

IRS said they processed my home buyers credit on 7/6
IRS said they arent cutting the check until 7/30!!!
Why does it take so long from the time they process the credit to the time they cut the check?
They did say they are adding $83 of interest, but i would rather just get the check sooner!

tax credit refund

I was reading your info online about your first time home buyers tax credit & noticed that you said & showed that you were calling them. What # are you calling? I can't seem to find a person to talk to. Thanks so much in advance for your response.

finally !!!! got it ...yeaahhh

I got my check today with a lil over 400 interest i have been waiting almost 11 months filed august 2009 . just wanted you to know it took a lot of waiting faxing ,and calling but finally it did come so good luck to all you still waiting hope you get it soon :)

how long did you wait

we are still waiting for ours.....they "accidently taxed us 8000 dol and now we have to wait for them to fix it and now they are denying it!

Credit filed

Well, I have my fingers crossed. I bought my first home on May 28th. Mailed the credit claim to the IRS June 16th. Thanks to the postings here I was sure to follow the instructions to the letter. I put tabs in to mark where the contract ended and other docs began, I highlighted the fields they need such as purchase date and price etc. Fingers crossed. I am not counting on a reasonable turnaround. Hopefully I will not be here a year from now fretting this thing. Good luck all.

tax credit

We closed on our house 4/20/2010 and I filed an amended return on 5/11/10, I got word from USPS that they received it on 5/15/10(IRS says they received it on 5/28/10, whatever).

I patiently checked IRS Where's My Refund a few times a week and finally decided to call and check on it. The representitive questioned why I was calling when a paper filed amended return takes 12-16 weeks to be processed. I kept my calm and explained that I filed an amendment to claim the homebuyer credit. When I told him that it was almost like his entire attitude shifted. He asked me for all my information name, ssn, address, phone#, etc. and put me on hold for a few minutes to "check my file." When he got back on the phone he told me my credit plus $66 in interest was set to be mailed on 7/9/10. I guess we will wait and see if this is accurate or not!


I didn't know they charge you interest. How does that work?

First-time home buyers

Brandon and Rose,

Did you receive your checks? I think both of you said they were to be mailed on 7/9. Our is supposed to be mailed this Friday and wondering how long it takes to actually receive the check.



I was mistaken... My HB credit was processed on 7/6, but they said it would take 2 weeks to just ASSIGN when the check is to be sent out!!! I figured it would be sent out that friday after processing... but no... lol
I called every monday and on 7/19 i was told my check will be sent out on 7/30... so im still waiting... impatiently... lol

so i closed on my house may

so i closed on my house may 22, 2009. Irs recieved my amended return on june 11, 2009. It is now july 4, 2010 and i finally got a response!! my check is being mailed on july 12, 2010!! it's suppose to be $9050.00 - we'll see.

first time buyer credit refund

finally got a response!!

Did you get something in the mail? or call to IRS?

denied first time home buyer credit

due to claiming real estate tax paid on land only bought in 1980. never bought home until now and they denied due to the land that has no home on it.
what is up with that?

I am on the same boat, and

I am on the same boat, and you should appeal this decision. Land is not a home and should not disqualify you as a first time Home BUYER. They are still going over my case, Ill hopefully get my money.

Husband got denied too

We just received the letter yesterday stating that because he colleceted interest on a LAND loan few years back now we have to fight it, it's not fair that 6 months ago they amended his return then turn around and say that they think that he has another house, nope just land.. It's ridiculous how this whole thing has went. Appeal and get a tax advocate and also contact your local tv station that's what I am going to do, they need to know that they can't promise something then turn around and claim you have something that you don't..Good Luck!!

thought i would be one of the lucky ones..

i have been reading so many horror stories about the first time & move up buyer tax credits and the delays people are experiencing, that i was expecting the same. We owned a home, and purchased a new one on April 9,2010. We did an ammended return for the tax credit- being that we used everything we had saved to buy the house. Mailed the ammendment on April 14th.
I waited 6 weeks, and then called to at least get an acknowledgement that they had received my ammendment. I knew i wouldn't have the money anytime soon, just wanted to know they had it. Nothing...
Called again 2 weeks later..nothing..waited another week..finally, they had it in their was received april 17th..just showed up in their system though.
First I was told the adjustment was pending, should be processed june 22nd. Called back, now it was moved to July 2nd- set to go out on the mail. I was thrilled. I made sure they had the current address, they verified it back to me..i'm thinking, "i can't believe we are actually going to get this on time"..
HA. I called today(july 2nd) to verify it had gone out...yes, it did- but to my old address! I mean, come on...I filed an ammendment with a change of address ONLY for the tax credit that I bought a new house, and you sent it to the old address!Then the girl tried to tell me that i did not put the new address on the ammendment. I said, no, that is not right, i have it right here, plus I am an accountant and work for a well know tax software company, and also do tax i know what i'm doing...they had nothing else to say.
So now, after I have called my post office, & mail carrier, begging them to hold it if they see it, can i hope to get it, as it's en route from Maryland right now to my former home. The IRS says it can not be forwarded. So unless my old postman catches it, it's going back and i can expect another 6 weeks or so delay until i get it.
So anyone with the move up buyer credit- check and double check with them that they have your right address, because obviously their drones doing these returns are too stupid to piece together "old address" .."new address".

What does the statement mean

We called the IRS this in regards to the 8,000. The told us that our claim had been approved and now the check is in pending state. He said that the system updates over the weekend and that we could call back next week to get an exact date of when the check would be mailed to us. They said this means when it has been approved it authorized to mail within the next two weeks but they didnt have an exact date of when the check would go out.

Has anyone else heard this before and if so is it true. Could we expect to get our check within the next several weeks?

Check Date

I was told on 7/6 that my Credit has processed and it would take about 2 weeks for a check date to be assigned.
2 weeks later - 7/19, i was told that my check date was assigned, 7/30, which was about 2 weeks out.
So from the time they told me the credit was processed to the time i will actually get the check will be a little over a month!

Good Luck! Hope you get yours sooner!

I am waiting to see what

I am waiting to see what happens. I called back after the 4th of July .. on the 6th and was given a mail date of today 7/26 with 44.00 dollars in intrest. So I am hoping they actually mailed the check today and I will have it some time in the next week, two weeks at the latest. Best of luck to you as well

Fax number for IRS

I'm going through the same thing as everyone else. I can follow instructions and I did. We even sent the settlement statement via certified mail after they requested that we send it again (it was included in our original filing). Well, I logged on the IRS website to check status and they have changed my refund amount. They took away my FTHB refund! :-( I just got off the phone with them (after waiting on hold for over 20 minutes) and they said they "didn't receive my settlement statement". Now wait a minute - I sent it certified mail!!! I'm sending it again (for the third time), with proof they received it last time, but I want to try faxing it this time. Does anyone have the number handy?

Frustrating, but Obama owes me and he better pay up! :-)

Frustrated home buyer

The fax number I have is: 1-816-292-6101. The last time I tried to fax my settlement statement back on May 25, I literally tried all day and it wouldn't go through because the fax machines were too busy. I spoke to a lady at the IRS and she said I would be better off to mail it in. I did and now they are saying they never received the settlement statement I needed to send it in order to get the tax credit. AAAHHHHH, They are making me crazy!

Get HB $8000 credit recently?

I filed an amended return late May for the Homebuyer Credit. I called the IRS yesterday (over a month after i filed) and they cant see my amended return in their systems!

Has anyone filed for the Home Buyer Credit in the May - June timeframe and actually received their $8,000 refund back yet or even heard back from the IRS?

I filed on May 16 and

I filed on May 16 and checked the website after about 6 weeks. The website showed check to be mailed on or before July 13. On July 7 got correspondence from IRS saying they needed more information (even though it had been sent with my original return). On July 8 I faxed 23 pages including their correspondence etc. Just got a letter yesterday (July 22) thanking me for the information and they would let me know in 30 days if they need more information. No mention of payment at all just need more information.

I can't even imagine what other information they would need. Hope someone out there is getting the money

I filed on May 7th and just

I filed on May 7th and just received my check yesterday July 19th. It took 10 weeks from filing date to get it!

Amended Return...

I filed my amended return on May 9th (home purchase was May 7th). I heard back June 29th that I was denied - home purchased after April 30th deadline. I filed an appeal including cover letter explaining P&S was signed March 13th and sale took place before June 30th deadline. I included P&S with highlighted sig pages, HUD-1 statement (2nd copy), and denial letter. Mailed on July 1 and receive certified delivery confirmation. And now the waiting game begins again.

Well I'm having the same

Well I'm having the same problem. I sent mine in June 10th and i called on July 14th and they told me they see nothing in the system for me. I cant believe it takes so long and I see other posting saying they had to wait like 8months that's insane i should have just filed it with my 2010 taxes probably get it around the same time.

I filed the amended return

I filed the amended return May 7th, 2010. I called the IRS July 2nd to make sure everything was okay with my return. They told me my check would be mailed on July 9th and I received it today.

I closed 11/25/09. I filed

I closed 11/25/09. I filed 2/10/10 and per requirement mailed it in; submitted via certified mail (received on 2/16/10). I was informed that there were delays so wasn't super impatient until a friend of mine who closed and filed after I did, already received their monies. On 4/15 I had not received anything so called to check. They advised me that a letter was sent to me requesting additional information but they had sent it to my OLD address (not sure why since I had updated info)...but they couldn't tell me what the letter was requesting. I had to go through updating my address via phone, sending in a change of address form and they still did not get my address correct (left the unit number for my condo off)...called several times after that only to finally find out that they processed my refund WITHOUT the homebuyer tax cred because they hadn't gotten the requested information IN TIME!!!! So I had to resubmit and addendum which was mailed about a week and a half ago and I'm still waiting.....I'm soooo frustrated because when you owe, they're all over you...when they owe you, it's a different story. Here it is July 1 and I do not have what is owed to me...speaking of, does anyone know if the IRS has to pay interest on what is owed and if so how does that work? That's what one person advised????

Well I apply for the first

Well I apply for the first time home credit in March 2010. I have been calling the IRS every week and all they kept telling me is in process they advice me it will take about 12 to 16 weeks. Finally on the 16 weeks they told claim was process and a check will be sent out on July 2, 2010 that I will received my credit with interest. I will keep you posted if I do received my check next week. So keep your hope up they will eventually process your claim.

Refund check

I wanted 2 know if u gotten your check? My family is in the same thing. We been getting the run around for months now. I wonder if theres hope for us. Irs received it sinces april 28 and its july 12 and no information still.

Not Mad, Just Fustrated....

The way the IRS operates is not a new idea to me. I am an accounting major in my final semester this fall. My hopes and aspirations.... land a job with the IRS. LOL..... I bought our home in Sept 09 and mailed all the info in December. This included the 1040X and all required documentation. 16 weeks later I received a letter claiming they needed ALL the information I already sent them. Now, during those 16 weeks, I called twice to find out the status of my refund. Nothing, both times. Then this letter arrives. I resent all requested documents and heard nothing. After 30 days, I called them to find out what was going on. They claim they mailed me a letter saying that they received the information and had 30 days to come to an answer. Well, as I explained to the gentleman on the phone, it has been 30 days so what's the answer. He said they would mail me a letter. The letter I got was dated for the date of my phone call stating "we received your info and we are granted 30 days from the date of this correspondance to make a decision".... They managed another 30 day grace somehow in this mess! Today is day 28, I opened the mailbox and saw an IRS letter. Yay, fianlly it's here! NOPE WRONG! It is another letter that says that they will render a decision by July 28 and then another 6-12 weeks before a check is mailed if approved. Total waiting time.... approx 1 year (if no other documentation is required). Now, I am not mad, I am fustrated with the way this has been handled by the IRS. According to their own by-laws, they are in violation of extending review periods without the need for more information. However, it's the IRS and what are we going to do about it... they know our hands are tied.

To anyone that mailed there FTHBC in March/April

We sent our amended return in the end of March 2010. IRS had it by April 1, 2010, per our tax preparer. Every time we called to check status, they said they had no record of ever receiving it. Then finally(12 wks) they said it was in process, and check back in 2 wks. Anxious, we called again last Monday and they said our check was to be mailed on July 2nd(all checks are mailed on Friday). Check came today and was actually mailed June 25th. Hang in there, and keep in mind that every time we called they told us something different. I think the info you get is greatly dependent on the person that answers and the mood their in that day!

Tax return

Bought my home in nov.2009 filled my fthb and taxes on march 9th-call them every week monday and friday-Since April 10th the recived everything and said it all looked good-Today is July 20th 2010 and i have yet to recive my return 5months and eleven days-Can someone please tell me what could take them so long-Called this morning on hold for 36mins spoke with a lady she looked at the account and said it was being reveiwed-same thing they told me in may-june and july-I so need this money my car was repoed last month-Im scared Im going to loose my house next What should i do? Please can anyone give me some input -Thanks and Best Wishes to all R.Phillips

They did it AGAIN

So I had something in writing that I would have an answer BY June 27th. Well June 27th came and went, no letter, no word, NOTHING!!! So I called today, just to make sure they didn’t send something and I like didn’t get it. Well, they were no help. Basically they said they updated their status on June 19th and they have 45 days from June 19th to answer me. Then why did I get a letter saying I would find out by the 27th?! WHY DO THEY KEEP TELLING ME THINGS AND NOT FOLLOWING THRU! This is SOOOOOOOOOOOOO frustrating!


According to the tax advocates, it was approved on Tuesday, so my check SHOULD be mailed on the 30th, BUT I can call back the week of the 26th to find out the exact date!


I got a letter dated July 5th that they were "sorry they didn't get a chance to review your information dated APRIL 13, 2010" (originally sent October 3, 2009) and they will have an answer for me "by August 6th". But will they? Hard to believe. Now my car's exhaust decided to fall off and I have no money to get it fixed. Since I have to drive to work and school, I don't know what I am going to do. >>sigh<< I don't understand why it is taking so long, but I guess they have to weed through them. My main frustration is the being jerked around with the dates. I wish they didn't tell me a date then not stick to it. I also have obviously NEVER owned a home, always turned in my taxes by February at the latest and NEVER claimed anything besides myself on my taxes. There is a clear history of me buying my first home and they ok'd giving me money off because of the taxes I paid on my place, but they don't believe a bought a place? I guess it is time for me to speak to a tax advocate since I am in a money pickle with my car now. >>sigh<<


How is it that some people got interest on their checks and some didn't? Just a thought..

It did take 18 weeks

Hello, I filed my amended return in Late Feb. and yesterday I got my FTHBTC a day shy of 18 that 16-18 week thing was true for us. by about week twelve I started calling and they didn't say in was in the system til about week 14.....never recieved a letter, I was just being told it was under I was pleasently surprised to get the mail yesterday and to have the check in there with interest. I'm sure your refunds will come, I guess we're all just on there Time Schedule. Good Luck to you all, and enjoy your new homes :o)


I have always been on top of my taxes, always on time and never wrong. I always did it myself and sent them in by mail and waited for my return. In 2007 I decided to use irs e-file, I was married at the time and filed a joint return. Now three years later the irs says we claimed too much social security tax, and want that $130.00 back plus $650.00. If i couldn't claim why wouldnt the irs website e-file flag it as i figured our taxes. The website gets all wages and taxes adds them up and enters them on the 1040, now I owe because of your mistake, and if that wasn't enough i'm now single I buy my first home and file my 2009 return withFTHBTC. Check your status said $13347.00 for 2 months then 1 week before my return the date was pushed back 3 weeks. Finally I got my return $8000.00 light and a letter that I was a previous home owner. Called irs explained I never owned a home but did file joint return with the ex in her home,HER HOME!!! Ok sir your ok resubmit 1040x, 5405, proof of home. 1 month later I called to check the status and I was told it was being processed. The very next day I got a disallowed letter. I know that B@#$H knew that the day before when I talked to her. The letter like before has a list of reasons why it could have been denied but not the reason. So after two hours on hold and numerous transfers to the right dept. I answered all the qualifying questions again. Then after 15 minutes on hold I was told even though I am a FTHB I cant claim the credit because I filed a joint return when I was married. What kind of crap is that? The woman on the phone could barely even explain it, like they make up new reasons to deny as they go. Every one I talked to had a different excuse or reason. I'm going to court I want whats mine!!! I did my part in helping the economy and now that im unemployed this is what my government does for me?




WE GOT OUR CHECK! AFTER 16 LONG WEEKS, WE FINALLY HAVE OUR MONEY IN THE PALM OF OUR HANDS. Thank you God!!! I pray that all of you find the same happiness very very soon! Stay persistent and if you have to call twice a week than do what you have to.

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