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.

Qualifying

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: http://www.irs.gov/pub/irs-pdf/f5405.pdf

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

Source: CNNMoney.com

Comments

Letter question...

I called the IRS and they told me too that I'd be getting a letter asking for more information. I hope I get at least the regular refund portion of mine like you did. I asked them what information they needed and they refused to tell me over the phone. Can you tell me what information they needed from you? If anyone else received a letter may I ask what information they were requesting?...I'd just like a heads-up. If email is better: bljr0730@live.com

Letter question

I also filed my tax return on February 04, 2010. I purchased a home in October 2009. I called the irs and was told that I was to receive a letter on March the 9th requesting additional information. I was told to wait a week to recieve the letter. I have not received the letter yet. I called and spoke with a gentlement (irs agent) on March 19th. He said that my return was in the errs department and that the letter that was mailed out was a ltr4216c. A settlement sheet letter. It appears that I did not include the settlement sheet from the house that I purchased with my return. He stated that when the letter arrives in the mail that I should be able to fax it back with the settlement sheet. This should release my return. To date I have not received anything from the irs. No tax return. No letter. I'm still waiting.

LETTER QUESTION...

I HAVE BEEN "RECEIVING" LETTERS FROM THE IRS SINCE DEC 2009.
OF COURSE, I NEVER RECVD ANY OF THEM.
IN FACT THE FIRST LETTER I RECEIVED WAS 2 WEEKS AGO
WHEN I WAS FINALLY APPROVED WITH THE HELP OF AN ADVOCATE.
ONLY WAITED 6 MONTHS...
IF THE LETTER EVER SURFACES, THEY WOULD LIKE YOUR HUD-1 FORM,
COPY OF DEED, AND A UTILITY BILL WOULD BE ACCEPTABLE. GOOD LUCK!

Got refund today

Closed on 11/12/2009
Claimed with 2009 Tax Returns (direct deposit), Sent to IRS on 2/12/2010
I checked status online few days back and it said being processed and will get it by 04/13/2010, but today 3/19/2010 I checked my bank account and the transaction is pending.

Still waiting .. anyone have a good contact number?

I filed my ammended return in December and still have not received any letters or anything. I called the IRS and they said all they can tell me is that they received the ammended return on December 21st.

Does anyone have a better number to call than the IRS main phone number? Any help would be much appreciated.

Thanks,
Mike

17 weeks and counting

Called the IRS last week and I was told they had LOST my return. They received it, it went to processing, and then it was lost. I was referred to the taxpayer advocate system and was told someone would contact me within the week. When they did not I called and spoke to 2 of the most unfriendly people ever who told me to wait another week while my claim was assigned to someone. I finally got a number today for the person assigned to my claim and his voicemail says he will be on vacation for the next week. Really trying to dig deep for my patience here as this was originally only supposed to take 4 weeks.

Wow...Im so sorry

Jeez thats got to be frustrating......We all need the money and to know you did your part & for it to get lost is a set back. I hope you are blessed & Pleasantly surprised soon. Best of Luck :)

Got Mine!

I filed originally on Jan. 19th 2010 but did not include the First Time Home Credit with my return and efiled. I got that part of the refund 5 days later. I then filed my amended return by mail on Feb. 8th 2010 with the required documents. I really expected that I would get the FTHB credit refund sometime in May. To my surprise I checked Where's my refund on the irs.gov website yesterday and it said that my refund would be directly deposited into my bank account on Friday March 19th! That is much much sooner than I expected so hang in there because if I got mine that quickly after filing an amended return those of you filing your return all at once may get yours much sooner than you realize! Good luck.

Congrats. When you checked

Congrats. When you checked the "where's my refund" page on the irs website and it asks you what your refund amount is, did you put your total amended return including the FTHB credit? or just the FTHB credit because you already received the efile refund amount? Just wondering.

I efiled my 09 taxes in February and received that amount 5 days later as well. I then sent in the paperwork for the amended return including the FTHB paperwork on Feb 22. Still have not heard anything and the irs website does not show any updates.

So it really only took 6

So it really only took 6 weeks for your amended return? Did you get your money already?

Still waiting

I filed my 2009 return Feb23rd 2010 together with the FTHBC, up until now no update seen in IRS website. Maybe it's too early for me to check it on, there are a number of you here who filed earlier than I am and still pending. I supposed I have to wait months more.

Just an update, irs website

Just an update, irs website stated that I will be getting my refund if no errors found on April 20th, I keep my fingers crossed...I njust need the money for my deck and patio(",)

THey told me the same thing

THey told me the same thing and now it says april 27th.... unacceptable!

Also filed the 23rd with the

Also filed the 23rd with the credit and still waiting on some type of update. It's really frustrating!!!!!

Received some Hope Today 3/22/10

We have been checking irs.com frequently to check our refund status. It showed no information available. Then today my husband checked and it said we will receive it by April 20th. We mailed our taxes on February 19th. Not too bad... although we have not received the actual return yet. We will see.

1 st time homebuyers

we filed our amended return. in januray we keep getting letters saying it will be 30 more days . we are good people thats getting the run around. i think its terrible that people can claim this and cant get it . got another letter today said we would here something by 04/19/2010. this has been going on since jan there needs to be a way to get whats owed to you.

So everyone else filing

So everyone else filing aren't "good people"

From what I can see on this site, from the most recent post, and several others I'm a member of, people are "getting what they are owed" It's a delay, but not the end of the world.

Light at the End of the Tunnel

I finally see a light at the end of the tunnel. I submitted by amended return in early October 2009. I went to exams in late December 2010. I sent the requested documents a few days after the New Year. At the end of January, I received a letter that I would hear back at the start of March. At the start of March, I received a letter that I would hear back at the start of April. March 18 I called to check status and was told that the check was approved two days ago. She said it takes a week to process the approval and that if I call back in one week, they can give me the date the check will mail. The IRS representative was the most informed that I have spoken to throughout this process. She quickly pulled up the status without putting me on hold, explained the various codes that were in her system, and was very positive. Let’s just hope that the information she gave was accurate and that I will really receive a check in the next 4 weeks or so. I can wait a bit longer if I know it is actually going to come.
P.S. She reiterated what I have read hear – that everyone claiming the credit is going through exams due to fraud. I don’t know if that will include this year’s returns, but it includes everyone who amended in the last half of 2009.

Anyone with the homebuyer

Anyone with the homebuyer credit who filed in late January, get their credit DD yet? WHERE'S MY REFUND..is saying I will get mine by 3/30/10. Anyone else have this date who has already received their credit?

finally a status!

I mailed in my return along with the FTHB credit on 2/1/10...I had called IRS on 3/15/10 because there was still no status showing up...on my first attempt I had failed to mention that i was filing for the FTHB credit and so the chic told me that nothing was found and to resubmit...i almost broke down. But when I hung up I remembered what i forgot to mention..so I called again and spoke to another person..told her the story and said that i should check in 2 weeks and to not resubmit..So this morning I checked and a status appeared! Saying if no errrors...I should be getting my refund on 4/20/10!!! Finally!

tax credit

how does IRS know that you bought the home from a relative? do you have to sumit a birth certificate?

examination processes

I mailed out an amended tax credit for 2008 when bought home 9/2009 with all forms and paper work. Called the irs about 2 months ago and they told me that the home buying now is so much overflowed and are training new office workers that it will take maybe up to 120 days to recieve check.
Just this week ,3/17/10, I recieved my examination process through irs.(oh boy!). Thats why i am reviewing replies, i am affraid I made some kind of mistake with paperwork or something. I found out through irs.gov, that the Irs put out a new form in the beginning of 2009 for 1st time home buyers which is form 886-a, which they will send out to you to add additional proof of first time residency and address in your state and county.
Most likely they are doing this is because of misleading frauds they have caught in the past time period, which Ihave seen on the news before. Allthough, when buying a house and dealing with a loan or mortgage for first home buyers, it should automatically go to the irs; from your loan officer, title agency or homeland contract lawyer, to take care of all paperwork and your time. This should be on a statement or record for proof of purchase, date, and all related residency backround of the buyer.
The only reason I moved out of my apt. of 10 yrs., was becuase of this great tax relief, after saving money up to do so.
But why does someway, the goverment has to make things harder for the people who are making better choices for themselves? Hopeing this will turn out ok for me and many others that won`t have to wait so long for a first home tax credit! I would like to here more from the President of the United States to be more advocate about this situation. Peace out!

Waiting for their decision

Hello,

We purchased our house in May of 09 and sent in the amended tax forms in the first week of July. We called in November and they said they never received our tax forms. We resubmitted them in November and then got a letter from them one month ago in February, requesting more information. We submitted the information via fax and also mailed a certified copy. We got a letter from them yesterday that was dated March 15th, letting us know that they should have a decision in a month. Hopefully we will hear something from them soon. We understand the long wait because there are only so many people working at the IRS. We will just be pleased to received a refund.

For the person using the IRS website, you can not use it for your amended return. It only works for a regular tax return.

irs is requesting additional information

Just checked where's my refund and it says my tax return has been received and is being reviewed and I will receive a notice requesting additional information.I sent the hud-1 statement along with my return and form 5405 just like I was instructed to do so what other info could they possibly need?

good news to all who are waiting

One good thing is that if you have been waiting for a few months you probably would have already spent all the money. I got mine a few weeks ago and it's already gone with nothing to show for it.

Homebuyers credit

The IRS does not want to hand out tax credits right away because the U.S govermnet owes the rest of world royaltys from medicines to technology that tax makers can not afford to pay thed debt. As a foreign student I went to college in Alabama and Mississippi where I played college baseball. The baseball statistics were made up at every college I attended yet all of them graduated. So now taxes have to cover up for these peoples mistakes and errors out in the professional field. A lot of countries do not incorporate national taxes because these countries don't have to and don't owe the U.S anything. You as a tax payer are not forced to live in the states either. You may choose to live somewhere else and never have to worry about these problems. These tax issues are brought on to tax makers and payers themselves. Question: What have you invented scientifically or technologically or gave back to the communities? Can you make your own guitar CD or a invent your own teloevision? If "nothing or no" is your awnser then don't complain about having paying taxes when you didn't invent these products.

???

Perhaps, you were so busy inventing technology and traveling abroad that you missed all of your grammar and spelling lessons. What a pity.

WHY ARE YOU ON THIS BLOG?

Go sound crazy somewhere else!

Most of the people on this website are here
venting, sharing their experiences, and seeking informative information
in regards to a tax credit that is rightfully and legally owed to them.
The tax paying folks on this blog is what keeps this country going
so even though in the 21st century we are still not treated equally or
treated fairly by this country, and may not always agree with this country and its choices, we still contribute to this country...

So again, go sound crazy somewhere else.

Spelling

No, but I can spell 'television'...can you say the same?

I just checked

I did mailed my amended taxes on Feb 5th. I called the irs three times and I also checked the website. I checked this morning at It said a check will be deposited on April 20th. If no problems are found. I sent in the Hud-1, with the w-2s, and the loan paperwork. I sent it regular mail with three stamps. I was being cheap . In hindsight I wish, I had sent it priority mail. The good thing is that they acknowledged receipt . This makes me feel better. Now I can only wait. Good luck to all.

First Time Home Buyers Credit

(Hopes this helps). I am located in Florida (which has no state tax). My Timeline. Feb. 23rd. - Mailed my paper return (regular mail/not certified). Included all documentation: signed 1040, signed HUD statement, & W2

Feb. 26th. - Latest Date that IRS should have received the return.

March 14th - My return is acknowledged in the "wheres my refund" feature of the irs website.

*Chose Direct Deposit for refund. Should receive it by April 16th. Where's my refund indicates April 20th.

Update

Just checked the "Where's My Refund Status" through the IRS website. It indicates that I should receive my refund by Friday, March 26..... (a turn-around time of 5 weeks).

Received check in 6 weeks

I mailed my forms on Feb 1, 2010 and received the check today (March 16, 2010). I was told it would take about 12-16 weeks but I'm impressed it came in 6 weeks.

question

we just bought a house on 3/19 and are amending our 2009 taxes to get the $8000 tax credit. we are first time home buyers and really want to get our refund soon--do you have any tips for speeding up the process? i plan to overnight the paperwork the cpa is gathering on 3/25. i just don't want to leave anything out that might help speed up the process.

IRS Changed date

I've been checking the status of my refund on the "where's my refund" site. It said I should recieve it April 6th 2010 for a few weeks and all of a sudden today it says April 20th 2010?? Hope this isn't the first of many delays. They signed for it on Feb. 7th. Anyone in the same boat i'd like to keep in touch. jamesrangitsch@hotmail.com

That is happening to me now

Yeah, twos weeks it said I should receive it April 6 and today ii shows that is going to be until April 20.
I guess I just have bad luck so far.

OK, this is taking alot

OK, this is taking alot longer than we expected. We closed on our new home on June 29, 2009. We did not amend our taxes at that time. I mailed our taxes on February 2, 2010 and the IRS signed for them on February 7th. As of today it's still not showing in their system. Can anyone let me know if it's taken them this long to receive anything from the IRS? We haven't even received a notice or anything.....As of today I called and it's still not showing up in their system....

The IRS signed for my return

The IRS signed for my return on 2/27/10. I called the 800 number to get status, the lady was very sweet, but told me that she didn't see it in the system and to call back in a week. I have tried to use the "wheres my refund" feature on the website, but it clearly states that you cannot check the status of an ammended return on the website. So how are you guys seeing anything about amended returns on the "where's my refund" site??

response & question

Yes we are having the same issues. Have you since showed up in their system. They signed for our return on Feb 3, and still as of today it is still not showing up at all.

OMG! I am having the same

OMG! I am having the same problem.. I sent my amended 2008 taxes back in Jan. and than I got something back from the IRS requesting that I submit the new 5405 homebuyers form, so I did that.. and than I sent it back priority mail, and through USPS tracking, it shows that they have received it, but I called today and they have nothing in the system for me.. This is getting very frustrating. Especially when some people are getting there refund back fater than others..

Being Processed

Filed my FTHBC with my 2009 return and sent it in Feb 2 and was received in California office Feb 5. Up until yesterday the IRS website was not showing any information on my return. Called this morning (Mar 16) and they say it is being processed and should see my return with FTHBC April 13th "as long as there are no problems". We shall see...fingers crossed. Good luck to all as well.

I just dont understand!

I just dont understand! After reading most of your post, it sounds like the IRS has a real crappy system( no shock)! Some of you filed early and are still waiting and others files as late as feb. and got their ftbc. Obviously they do not do them in the order they were recieved. We filed ours at the end of jan. and I called today(March 16) and the lady told me that ours was not in the system yet and we will have to wait atleast 12-18 weeks. For those of you that got yours already... congrats! for those of you that have been waiting way longer than us... I am sorry:( I just hope and pray that the IRS can some day find a way to pull that stick out of their rear ends and to get the job done!!!! I mean come on, in a way aren't we the ones that pay for their pay checks???? Oh yeah.. when it comes to paying them, they have no problem with getting off their duff and gettin' their money back.

Is this normal?

I filed my taxes on 1/29/10 with my tax credit on a home purchased 12/19/09. I kept checking where's my refund and never got anything! I called and talked to about 5 different people all of whom told me they have NO RECORD OF ANYONE RECEIVING my tax information!!!! They are telling me to re-send all of my documents. Which would be another 6-8 weeks! They are saying they have no record of receiving anything! I don't understand this!

FINALLY...CHECK DUE TO BE MAILED!

Finally...Filed October 13. Sent Suporting docs on my own Jan 5th (never recv letters from IRS), got an Tax Advocated Feb 19th. Check will be mailed Mar 26th.
What a long, slow, miserable, frustrating road I've been own.
$8219 is what I'm getting which includes the TAXABLE interest they've tacked on.
Now I can do some repairs and save the rest for a rainy day.
Best wishes to those who are still going through the grind...this experiance has been a complete mess.

I just called and spoke to

I just called and spoke to another person and she told me that my check will be sent to me and not direct deposit. She also said that it will be cut on the 26th with added interest of $299.14. I've been waiting since Aug 11th 2009. GOOD LUCK EVERYBODY!

7 months and still waiting

we filed an amended return for this credit in august and still nothing every time i call i get told something different was told i was sent to exams on the 18th of December .I have called them and was told that i would receive a letter stating what they needed and how to get it to them but still no letter, so i called back and get told im not in exams yet im being reviewed ... waiting to go to exams so they dont know when i would even get a letter ...like everyone else we had plans with that money to do things to the house we bought but are still on hold and getting no where fast ...how long is this really gonna take or is it even gonna happen at all ??? I would rather be told a straight answer than to keep waiting ..come on irs !!!!

filed in july '09

i'm not going to bother with all of the details about all of the calls etc.

filed in july 09
sent to exams sept. 09
2 referrals placed for update
zero contact from irs
my filing has yet to be looked at.

July must have been a bad month to file

We filed then too, and only have had contact when we made it. Finally we got a tax advocate assigned, but that was after calls we initiated. At this point, I'm not expecting much. I did notice in reading through the "new and improved" forms they changed some of the rules in November. Supposedly they're not retroactive, but bet they deny some folks anyway, based on the new rules, even though they bought and filed before Nov., just MHO.

I just called the Irs and

I just called the Irs and was told that my money will be direct deposit next week. Well the problem is I went to Jackson Hewitt last year and received a RAL. I no longer have that pre paid credit card that Jackson Hewitt gave me last year. So now I have to wait till it hits the bank and then be sent back to the IRS so they can cut me a check. This is crazy

update

this is my third entry. i received my return back on 3/11...apparently my preparer forgot to include the 5405 form....DUHHH....i originally sent my return in on 1/19...it was stamped 1/27 by the irs..they didn't look at it until 3/1 i filled out the 5405 form and sent it back ASAP....who knows...how long it takes everyones's situation is different.....still keep hope alive people and GOD BLESS...

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