How do we file for the first-time home buyer tax credit ?
My Girlfriend and I are planning on buying a house in May. We just heard about the first-time home buyer tax credit. We plan on getting the loan in both of our names. How do we file for the credit ? The price of the house around 110k. Would it better if one of us applied for the credit or both of us. Thanks for any help.
- 1 decade agoFavorite Answer
First of all, what the person said above is correct...it is an interest free loan, but what the other person said about waiting for the 15k tax credit is NOT CORRECT. There is a huge misconception about this 15k vs. 7500k tax credit. The 15k (which is the maximum, it's actuallu 10% of your home cost) tax credit is NON REFUNDABLE TAX CREDIT. Meaning, unless you and/or your spouse makes enough money to incur 15k in money you owe in taxes each year, the credit will help lower your tax liability to maybe 0. HOWEVER, if you don't owe enough in taxes, than you won't get a REFUND OR CHECK with the remaining money. The 7500 tax credit, is refundable, so in our case, we bought a home and didn't owe taxes so we recieved a check for the whole 7500. Which we have to pay it back, but its intrest free! You would need to purchase a home before this law passes, because it will sunset the current 7500.00 tax credit, meaning going forward it will be the only home tax credit you can choose from, whether it benefits your or not.
Hope this helps a bit!!
- peacefuldisasterLv 71 decade ago
The Federal Housing First Time Home Buyer Tax "Credit" is really a no interest loan that must be paid back over 15 years. You receive the credit by claiming it on your Federal income tax return (the line it is on depends on what IRS tax form you use to file your taxes). Married couples making less than 150K and single people who make less than 75K can receive the full $7500 credit, but you must purchase the home between 4/9/08 and 6/30/09 to qualify.
This link may help: http://www.federalhousingtaxcredit.com/
- Anonymous4 years ago
The last I heard no. You need to send copies of settlement papers which e-file is not equipped to handle. I wish they had some way to upload scanned copies. But anyways, it can take more than the 6 weeks you expect as there were numerous frauds in this credit last year. Hard luck but the money is worth the wait. The sooner you file the better as you will beat the rush. If you are expecting a sizable refund even without 5405, you can e-file your regular taxes first, get the refund quickly, and then file an amendment 1040x with the 5405 later and get the homebuyer's credit later and slower.
- 1 decade ago
The other person is not correct there is a first time tax credit if purchased before a certain date. It is more like a loan that starting in 2010 will have to be repaid with in 15 years. It is interest free. My son qualified this year since he purchased a house this past November just keep in mind if you sell the house before the money is paid back the full amount is due the year you sell the house. With the way house prices are dropping might not be worth the gamble
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- 1 decade ago
Wait. There is currently an amendment in the "American Recovery and Reinvestment Act of 2009" that modifies that first-time home buyer tax credit. This amendment would bump the credit to $15k and make it so you don't have to pay it back!
You should wait to file and watch this legislation.
- A HunchLv 71 decade ago
There are specific loans for first time home buyers (all people on the loan have to be 1st time buyers).
there is no specific tax credit for first time buyers.