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.  



What is the number to call??

What is the number to call?? I've been waiting about 8 weeks and am getting very frustrated, but don't know who to contact. Please help!

Let's See How it Goes

I mailed my return on May 17, 2010. I just checked the "Where's My Refund?" and shows IRS received my return and should receive my direct deposit by July 6, 2010.

We'll see what happens, I'm a little weary after reading these posts...but let's see how it goes:)

I got it!! Optimistic

Hopefully for others you will get your refunds soon. It seems most filers are delayed due to amendments. I filed paper May 17, 2010, not an amendment, IRS acknowledged it on June 2, 2010 and my money s in my account today, June 11, 2010! I live in GA, so mine went to the Atlanta Division. I wish you all the best.

Deposit Should Be There June 11 No Later than June 16

I don't know if I will receive my refund on Friday June 11 by Wed June 16. I called IRS and that's what they said. I mailed my return on May 17, 2010 and was acknowleged on June 2, 2010. I did not file an amendment. I sent mine to Atlanta office, maybe they're not as backed up. We will see, I will let you all know if I get it Friday June 11,2010. Best of luck to all.

Wondering if you got your

Wondering if you got your refund? Our notice said we would hear something by June 11th. I filed back in February for a purchase made July 2009, and it has been the same story that everyone has repeated here~~need to re-send the HUD (this seems to be a standard delay tactic), "processing", etc,~~ it is frustrating, to say the least!

How did you find out so fast?

How did you find out so fast using the "Where's my Refund" link? It says you need to wait at least 6 weeks for any information if you use that link on mailed returns.

So you just bullsh*tting us?

Don't give up, maybe it's improving

It's only fair to include the success stories with all of the bad. We purchased our first home & closed 3/23. on 3/29, we sent in 1040x for an amendment to my return that had already been received & 5405 along with HUD-1 & W-2s from 2009. Verified the correct address & indicated it was 1040x along with the address. 9 weeks later to the day, check was in my mailbox. Not sure why it went so smoothly for us, but most of my friends here in IN have had the same results as I though. I called every week and Until last week there was no record of them even receiving my paperwork, so not until the 8th week did they acknowledge receipt of it, but also processed & sent it out that same week.

I live in IN and am still waiting.

Just wanted to add to your comment that people in IN are receiving their refunds in a timely manner. Not true. My 2008 1040X was received by the IRS on 9/9 and I am still waiting for my refund.

Back when I sent mine in, they weren't requesting additional information. It wasn't until January that they requested additional paperwork. Sent it out the next day. Took 60 days to hear a response and when I did, I was denied.

After receiving the denial letter, I sent in additional information to prove them wrong (once again, the very next day and at the end of March). Still waiting. Called last week only to be told, that they have yet to review the latest paperwork that I sent in.

What a joke. It's been 9 months and still waiting.........

I want mine to go smoothly

I want mine to go smoothly too so I was wondering if on 1040x, your "current address" was the same as on form 1040? (which for me, was the apartment I was living in, even though at the time I filled out 1040x I was living in the home I bough). When I filled out 1040x online, the address still showed up as my apartment, should I change it to the homes address before I mail it in?

Did you have Bank

Did you have Bank Morgage?
Or did you pay cash?
Getting more money to the Banks may have something to do with the
great service you received.
I paid cash and have been waiting since Feb, like everyone else.
My Cousin had a morgage, and they paid the bank imeditaly, so it could be used for their downpayment ...

Supposedly getting my refund this friday!

After waiting almost 5 months, according to WMR, I should be getting my check deposited this Friday! I contacted the Tax Advocate a few weeks ago and was contacted by someone last Monday. She told me to send in EVERTHING to her via fax and she would resubmit my return, (as it was showing that I was missing things i sent in, and was never even notified were missing). She told me it would take at least 2 weeks to process and she could not guarantee me that she'd be able to tell me a deposit date until 6/21. So I faxed everything in that Tuesday, and while the WMR site has been down the last few days, I decided to check again today and to my astonishment, it says I will be getting my deposit on 6/4!!!! This is the best news I've heard in MONTHS! I highly suggest contacting your tax advocate if you've been waiting more than a few months and are getting nowhere with the irs phone lines. While I'm virtually broke and my credit cards bills have become insane, no one asked me about any financial hardship when I contacted them. It[s such a relief to almost be done with this, but I won't feel at total ease until I see that deposit in my bank account. Good luck to everyone else!

Did you get it?

Did you get it?

I was just curious if indeed

I was just curious if indeed the direct deposit was made? I sail in the same boat as everyone else here.

tax advocate

I am having a similar problem. We filed for the first time home buyer credit and are waiting for it. I have called the IRS and am getting the run around. Can you please tell me what a tax advocate is and where to get one? What do I do? Does the IRS give you one or do you hire one yourself? Thanks.
-Marianne Anzalone

Hope Mine Doesn't Come Late

I filed my ammended taxes today. I included the settlement letter, buyer agreement, form 5405 and the 1040x and a copy of my 2009 return. Now I see that I should have included a copy of my driver's liccense and a utility bill. That was not stated on the irs website. I also called and spoke with a represenative twice and neither of them stated that. Hope it doesn't take the 16 weeks plus like everyone else.

I sent my ammended taxes on

I sent my ammended taxes on May 7th and only included what was stated on the IRS website. I would think if they required more documentaiton they should specify that information on there website. Hopefully we will be getting our 8,000 sooner than later. Good Luck:-)

Sent our tax return in March

Sent our tax return in March 11,2010. About 3 weeks went by until anything showed up on the IRS website. Return date said May 11,2010. I called the IRS on May 07,2010 and was informed that on April 28, 2010 they sent a letter requestiong more information. Recieved letter May 10, 2010. IRS recieved the information they needed back on May 21, 2010. Now on June 02,2010 IRS website states delay code and to call with the code reference. I call the IRS June,02, 2010, I was on hold for 25 minutes. IRS asked me if I recieved any letters I told them Yes and information was sent back and recieved by IRS on May 21,2010 They told me wait 30 days after information was recieved. Okay so now we are in 12 weeks and have no idea if we will have a quick ending or a 7 month return process. I am not going to worry about it!!! what happens happend and I cant speed it up by stressing. I already told my husband that I am betting we wont get out money until August or September granted we dont get denied and I have to get a TA or call my congressman.

Homebuyer credit denied

I filed with HandR Block on March 16. On April 15, I received a letter stating I needed to provide my W2 (even though I believe it files electronically and I know I sent a copy of it with the filing) On Friday, I received 2590 - exactly 8K short of what I deserved. I called and was told the homebuyer credit was denied. I sent all the proper paperwork with the original filing and NEVER received correspondence that what I sent was incomplete. When I called the rep would not help me, but said I would need to appeal the decision. I feel beaten down... this has gone on for weeks - I plan on inviting the IRS to my new home for a dinner party. The can bring me the check then. And if roles were reversed, I would be paying severe late penalties...

NO kidding right?!

NO kidding right?!

Refund is coming

Purchased my first home in November 2009. Filed my tax return without the HUD statement on February 1, 2010. Received request for HUD in early March 2010. Sent the HUD back right away early March. Called the IRS today (6/1/10) and was informed that my refund and tax credit check will be mailed (with interest) on June 11, 2010. Still keeping my fingers crossed and hope the check with arrive...with patience. Hope this helps! Good luck to all!

Refund is coming

Update: IRS kept their promise. Check was mailed 6/11/10. I received it on 6/14/10. 4 1/2 months of patience finally paid off. Hope everyone else gets their check soon!

Your schedule of

Your schedule of events/months (closing, filing, re-filing) is exactly like mine -- right down to me failing to send in a HUD statement, and being notified by the IRS to send it. Maybe one of us will finally win this housing credit lottery this Friday?? ;)


Good Luck, I was also told that my refund will be mailed on June 11, 2010. Thank God

I purchased my home in

I purchased my home in October 2009. I to called the IRS on 6/1/2010 and they told me the samething that my check will be mailed on June 11 with interest. But to give it 3-10 working days to get here.

No luck

Filed paper return 2/21 - 4 weeks later checked IRS website - stated i was getting my refund 4/30. April 12th got a letter said they needed my HUD signed by all parties. Faxed it to the number the 12th, 13th, 20th, 23rd, called the 26th and they had not gotten the information. the 30th i called again and again and again. On May 8th they had and IRS open house after going online and went to meet with a IRS person direct. Brought every form under the sun and they told me a tax advocate was supposed to contact me and that was 30 days prior. Got a name and number and called the next week. Sent my forms again, spoke with someone in person who told me they had until the 15th of june to get me my refund, and they had until July to close my file. Haven't had much luck since, called last week with no change in status after they told me all my forms were recieved and my info was at the top of the pile. Checked the IRS website and my return is back to be processed and reviewed. Calling again this week and every week here after until i get my money.....this is a joke, do i get interest?

Day 1, no refund

I hope the comments on this site do not portend difficult times ahead between me and my refund! said I would receive my refund by June 1, 2010. Well that mail delivery day has come and gone, with no refund check. Used an accountant, sent everything in on April 15th. I will lose my mind if I get a letter telling me they need my HUD settlement again!

Similar story

Sent in our forms on Feb 1st. Received a request for HUD in the end of March and sent that via certified mail the a day or two later. Today we received a check for an entirely arbitrary amount that is larger than our non-credit refund, but around 6,000 smaller than it should be with the refund. IRS states that there was an error in calculating AGI. Hmm.... Neither me nor my accountant can figure out what they mean and of course they won't tell. Great...

Tomorrow I am going to contact our congressman and our senators and see what they can do. this is just preposterous. Both my wife and myself have just lost our jobs over the past few months and although I will start working (half time) again in August and we have a little money saved up, this is really upsetting. We are paying 6% on the remaining mortgage and so every day that the IRS stalls costs us $1.2 in interest. I am generally rather fond of the current administration, but this just sucks big time!

Filed in Sept 2009 still waiting June 2010

I've been in my first home just three months shy of one year and I am still waiting on my first-time home buyer tax credit to come.
I racked up some credit making repairs to my new home thinking I'd get the $8,000 and pay off all the newly accrued debt and some of my old debt within weeks of moving in. I've managed to skate by avoiding any major financial hardship by getting a roommate, which was not part of my initial plan, but it's working out.
I've called the IRS countless times and everytime it's a different story: "it's on its way," "there are several red flags on your account," "it's in the mail," "we need X, Y, Z from you," "wait two weeks and call back," etc...
I filed for a tax advocate in February who told me that until the IRS literally stops responding to me, as in not picking up the phone and answering my questions, they can't help me. Seriously, I asked this IRS advocate woman exactly that, and she confirmed. Some advocate service...
In May I received a letter stating that my tax-credit was denied due to missing information such as my HUD statement and other documents. Really?! It took eight months to tell me the IRS needed more information?! Those who are waiting can imagine my frustration.
I recently contacted one of my state representatives who seems to have escalated my case with the IRS Tax Advocate Service providing me a specific phone number and representative. Only thing is, I've left that guy two voicemails responding to his initial call and letter I received in the mail giving me a 3 day time limit for me to respond. Guess I will be calling daily.
I also received a letter last week from the IRS stating I'll have a "response" from them within 30 days regarding my tax-credit. That should be the end of June. Can't wait to see why I haven't gotten it by then.

Seems like I have you all beat

I purchased my first home in Feb 2009 and filed an amended return in June 2009 to claim my $8000 credit, now one full year ago. I have placed numerous calls starting in Sept 2009 and have yet to get the IRS to respond other than my claim has been flagged and is in review. Twice I was told someone would respond to my inquiry within 30 DAYS (unbelievable). Nothing happened. Not a single call. I've asked to speak with supervisors to be told they have none and someone will respond in 48 HOURS. No calls. The last lady was extremely rude and told me that my calls, never less than 8 weeks apart, have been the cause of the slow response/refund. I really have almost wrote off hope I will ever see my money. It sounds like someone received at least a little help through an advocate, so I will give that path a try.

Ime in a simalar situation.

Ime in a simalar situation. I also files in september 2009 but, an amended return. I also had to give the hud one form twice.
i must have called the IRS 20 times since december 2009. Finally on 6/1/2010 I recieved info that i have qualified for the $8000.00 + interest. heres the " good part"
lol. it will take another 6 to 8 weeks to get that money. woooooow. so i will be very close to a one year wait.
Good luck everyone.

Still waiting....Wish i could run a business like the IRS does.

We bought our home on July 1st 2009,spent most of our savings on the down payment &closing. We filed our 2009 taxes on Sat. Feb 13th 2010 with our accountant of 7 years. She advised us to HAND DELIVER THE DOCUMENTS to the local IRS board.because of a ongoing problem she has witnessed of the IRS stating they don't receive the documents,Well since Monday Feb 15th was a holiday,My husband hand deliverd the documents on Tuesday Feb 16th 2010 and he even had them stamp and sign on our copy and theirs that they had received it..Well 2 weeks later we receive our small refund from the state(just letting u know how fast the state worked)...then 30 days go by i am checking our "wheres my refund" almost daily and it states "processing" I call and All i get is "in transition"....then on April 12th we receive a letter that states "we need further documentation to complete your :"claim"...Well i review with my accountant and sure enough its the same things i had already sent in..I called the IRS and a very rude lady I have her name don't know if I am aloud to put it on here..put anyways a very rude lady that is treating me like some kinda felon,states well we don't have it so until we get it your file will sit on my desk..I fax them straight to her,call her the next morning to make sure she received it..Yes they had,she ask me to call back in 30 days, WELL AFTER 32 days I call, my file still hadn't been reviewd..They ask me to call back again in 7 days,still not reviewd and I get this very slow speaking gentleman that acts like if he repeats the same sentence over and over about how the computer picks the ones that go into review and how its 1st come 1st serve basis that it makes this whole ridiculous and unfair process "ok"...Well I call back again on May24th which is 14 weeks from hand delivering the documents and i get the exact same BS...Files still haven't been reviewd and my claims manager will get to it when she can..I ask to speak to her,"O we don't give their #' s out they are very busy but I can tell you she should be on the same week as me which is 1 week out of reviews from your date of filing,i then demand to be transfered to her, i left a very lengthy message on her voicemail she called back a few days later to inform me that she will get to my file when she gets to it,i told her what the lady said about being a week out from my paper work and referenced the ladys badge #,She stated she doesn't care what that lady said and she will get to it when she gets to it and right now she predicts 45 more days and then "IF" i am gettin the credit then it will take up to 2 weeks to process the money..I almost started to cry she was so hateful,and i told her i wished I could run a business like they are operating on ..I run a small Franchise and I have to pay in LOTS OF money every year to THE IRS>>>I have NEVER ask for extension or been late on paying in...SO WHY IN THE WORLD IS THIS THE IRS LETTING THEIR WORKERS TAKE THEIR TIME????????? I am going into financial hardship,my savings is depleating..I am so devistated to admit that,I tried contacting my congressman,no answer except a generic letter stating they received my concerns...
Hope it comes soon....

First time buyers...

We were told by the real estate agent and the bank that is financing our home, that as long as we have NOT bought a house in the past 3 years then we get this tax credit. We bought our house March 26, 2010 and I just got a letter from the IRS saying we do not get our money because we previously claimed one of the following, real estate taxes, Form 8396, Mortgage Interest Credit, Mortgage Interest points, Form 5695, Residential Energy Efficient Property Credit, or proceeds from real estate transactions. My husband was deeded land when his dad died. Back in 2008 he sold an acre. Is that why they wont give him the money? Back in 2009 he deeded all the land and the house back to his mom. This has us in an uproar. The banker and everyone knew this.

You should have read the irs

You should have read the irs page, if you owned a home or land in the past 3yrs you cant get the tax credit. So yes because your dh owned land less then 3yrs ago (even though he didnt buy it) you cant get the tax credit

What IRS Page?

What IRS page says you can't get the tax credit if you owned land in the past 3 years? I can't find anything that says this. It wouldn't make sense to offer the credit for new construction and at the same time say you can't have owned land in the past 3 years. It takes time to build a house, and you have to buy the land before you can build on it.

Dam I.R.S.

Same story here guy's we shouldn't blame the I>R>S> we should blame Mr. Obama
for passing the bill to screw the common tax payer its been 17 week now was filed on feb 1st called I.R.S. june 1st it was just now put into the system now I have to wait 6 to 8 more weeks dam I wish we could charge them the late fees penalizes them for being late and get paid interest by the time i get it I will be a millionaire..

well best of luck everyone

Dam I.R.S reply

I have waited 8 months now and still no money.

well i did go to H&R block

well i did go to H&R block mailed mine out on april 22, 2010 and i hope that mine come's back on time.
all the storys i read hear don't sound good at all. well lets see what happens.

We went H & R Block they

We went H & R Block they mailed ours Feb 6, IRS got it Feb 9 and we are still waiting. Plus IRS requsted the settlement statement again that we know was included. Figure we will see some time next year.

Me and my wife are waiting

Me and my wife are waiting for our return for almost a year they finally tolds us today that they were going to audit us because we claim taxes on the property that we bought and we didnt know our taxes ladie saiod as mlong as know one else claimed it it ws ok the owner of the at thatg time owed us money for fix the hnouse so she said we could claim the house taxes and we have a paper that she wrote for us to do so.So know the IRS is trying to say that we are not going to get our 8000 dll refund because i shouldnt have claimed does taxes when i wasnt they owner but i boughtg the house from our lanlord and its my first time buying a house know we spent all our savings on fixing the house and im disabled and only my wife works and im behind in our gas and electric and the rest of our bills wWHAT CAN I DO CAN SOMEONE PLEASE HELP US.

Call a tax advocate

I mailed my paperwork on February 2 the irs did not receive it until February 11. After calling the irs for three frustrating months I have learned a couple of things. Call every Wednesday or Thursday that's when their system updates. Also the instructions on form 5405 does not tell you everything that you need to send. I filled our form 911 and faxed it to a tax Advocate. I also called them at 1-877-777-4778 they said you will need a copy of your hud statement , copy of your drivers license,utility bill and mortgage statement. I sent them also a copy of the deed. If your in a hardship you have to show proof that your in a hardship such as your house is in foreclosure dissconnection notice on a utility bill. I received a call last thursday from my advocate and they finally approved my credit. She is going to call me in about two weeks to tell me when they will release my check.

Good Luck to everyone!!

filed in Feb and its may 29th where is my damn money

filed in feb- got the we need more documentation spiel- weeks later the address change spiel- now 58 days later I am still in processing and waiting for my money. They admit there are issues with the time it is taking to process returns for the tax credit. They still dont have my address correct in thier system either. I have done everything they wanted and correctly. I think the IRS is stalling. Its rather lame if you ask me. I wouldnt have bought a house if it werent for the security of the credit, and now I am getting dicked around by the IRS. How are we suppose to conform to the governments policies and procedures if we have no faith in them. Im super pissed that I dont even have my personal return aside from my first time buyers credit. That is mine. They took it from me and I want it back. WHERE IS MY F#$%ING MONEY!!!!!!!!!!

Filed on 1/26 and now it is 6/3 - no refund as of yet

The IRS did not open my return until 3/2 - I just called this morning and the return is in 'Examination' which means no one can touch it or ask questions until it comes out of examination - any attempt to find out why it is taking so long will fall on deaf ears. Looking back - I could have filed my regular return and then amended it for the Home buyer credit - but early on the IRS recommended that I file them together and of course as a paper return - almost 5 months later and they still can not determine if it is a fraudulent return or not.

No refund

I live in Jacksonville, FL and it is the same story here!!! IRS states it is because of the first time home buyers credit. I didn't claim it, so why is mine delayed?? It has never even taken this long and need my money like everyone else.

That is how I feel! We

That is how I feel! We bought our house in a rush just to get this credit. We mailed it out like April something and its june and we havent even heard anything. I think that they should ATLEAST send you something saying that they have received your papers... i mean damn. How do we even know it got there!
We need this money and were counting on it.. this is just crazy. 7,500 is a lot of money to us and they are just taking their jolly good time. Its worth the wait I just wish I knew something..

No explanation

I bought my house in Oct. 2009 and sent in all documents on Jan 31, 2010. Beginning of May, I am asked for more documents so I resend in my settlement statement. Last Friday, I only received the portion of my tax refund minus the 8000 dollar tax credit. It looks like this whole thing is a Sham with the govt promising housihg credits. I will have to call the IRS to figure out why I didn't get my credit. It's amazing, if someone is late or doesn't pay taxes, they go to jail for tax evasion, but the federal gov't doesn't have to abide by their own rules.

Sounds Very Similar...

My story is very very similar....
Purchased home Nov 09
Sent in all documents end of Jan 10
Beginning of April was notified they didn't receive my settlement statement..(which was stapled to my tax return..hmmm...)
Faxed the settlement statement to them the very same day April 2nd 2010
Called 2 weeks later was told they rec'd correspondance from me on April 2nd but to wait 4 weeks.
Called back at the 4 week mark and was told 2-4 more weeks.
Finally in 4 MORE weeks the other portion of my tax refund was deposited into my acct on May 28th(not the homebuyers credit)
Was told June 7th I would receive a letter stating why this was done this way.
Rec'd the letter June 4th and it stated that they changed my amount to not include the tax credit because they never rec'd a settlement statement from me?!?!?!?!?!?!?!

really? it was faxed to the orginial refund I mailed to them.
they told me they rec'd correspondance from me.. which was the settlement statement yet again.
and now they didn't receive my settlement statement????

hmmmmm..... so now I have to call them and see what my next step is.....
...and i'm assuming wait another 6 months. So maybe when I get my 2010 tax refund I'll also get the rest of my 2009 return?!


bad experience with IRS for this tax credit. I think they should be penalized for late fees and interest too.

you will get interest on

you will get interest on your $8000.00 if you are ever lucky enough to get it.


Bought my house in Nov 09 and on Feb 2, 2010 I mailed in my complete paperwork (all necessary forms ), as of Feb 10 they got my paperwork. Checked the IRS website and was to receive my refund April 25th. April 30th my status on the website changed to Processing ..... code 1301. Called and was informed that if I don't get my money by next Monday (and that it is Very unlikely that I will ), that I need to call National Tax Advocacy and have them intervene. Any comments on what to expect from these guys when I call them?

I mailed mine in on Janaury

I mailed mine in on Janaury 21st. Same story for me, website kept giving me different dates up through April. I called May 5th and they said it had been processed correctly on April 21st and that I should receive it within 4 weeks. called again last week and they said it hasn't even been processed yet and I should be receiving a letter to submit additional information.

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