Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 1 decade ago

Will my delayed divorce cause IRS to deny or hold up first home buyer tax credit check?

My ex & I separated in 2001, legally settled in 2002. House went to him & I was removed from mortgage by 2003. We only filed for divorce 2008 & filed joint tax returns until then. My 1st time filing single was this spring. I closed on my house 6/17. Mailed 1040x on 6/19. Will the fact my ex and I filed together appear like I was a home owner more recently than the actual state of things and complicate IRS process? Just nervous about possible glitches as I wait.

Update:

To clarify... Yes, the quick deed/ title and even refinancing of mortgage were all done between 2002 and 2003 I believe. The last joint return was in 2008 for the 2007 tax year. Note: that even prior to my filing a single return this March for the 2008 tax year, the address given on the joint returns was my apt. address.

Sounds like I better have different records pulled in order to prove what could be asked. I sure hope the response suggesting an 18 week wait period is wrong and hard to believe. I wonder if I call in a couple of weeks and explain my situation and ask about sending copies of these items now instead of asking, if this might quicken the turn around time. Any thoughts?

Update 2:

To clarify... Yes, the quick deed/ title and even refinancing of mortgage were all done between 2002 and 2003 I believe. The last joint return was in 2008 for the 2007 tax year. Note: that even prior to my filing a single return this March for the 2008 tax year, the address given on the joint returns was my apt. address.

Sounds like I better have different records pulled in order to prove what could be asked. I sure hope the response suggesting an 18 week wait period is wrong and hard to believe. I wonder if I call in a couple of weeks and explain my situation and ask about sending copies of these items now instead of waiting, if this might quicken the turn around time. Or would it confuse things? Any thoughts?

8 Answers

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  • Mathew
    Lv 7
    1 decade ago
    Best Answer

    I presume from the information that you provided you did not file a MFJ return with your ex for 2008 tax year. If that is the case there should be no problem. It is possible that you will be asked to clarify the information that you have provided us but you should not do so unless asked. In about 18 weeks from the date you filed you may wish to call the IRS if you have not heard anything from them.

  • Anonymous
    1 decade ago

    It's taking 12-16 weeks to process the amended returns.

    On top of that the IRS is verifying all first time homebuyer requests.

    Our poster filed MFJ returns with her spouse through 2007. That 2007 tax return is going to show a primary residence with mortgage interest and property taxes. The 2008 tax return presumably was with a standard deduction.

    In all likelihood, the IRS is going to ask to see proof that she's been renting for the past 3 years, has a driver's license with a different address, etc. Since the disqualification is primary residence, owned in the past 3 years, that should cover it.

  • 1 decade ago

    The question isn't when you were removed from the mortgage, but rather, when were you removed from the title (hopefully in 2003 at the same time you were removed from the mortgage). You may need to provide proof that you were removed from the title in 2003 (the re-recording of ownership should be sufficient). I would highly suggest seeing a good tax attorney or accountant if you have not heard shortly (rumor has it, it is now taking 8 weeks or more to process the amendments for the 1st Time Credit).

  • 1 decade ago

    If you were divorced or had a legal separation (not just living apart) on December 31, 2008 then you are considered unmarried for 2008. Seems to me the IRS is going to want to see proof of this. If you are still married, with no legal papers showing divorce or separation (which depends on state law), then your unmarried filing status may be disallowed, and with it, your first-time homebuyer's credit. It would be disallowed because your spouse does not qualify.

    It's clear that you had no ownership interest in a primary residence for three years prior to your purchase of your home.

    If you are disallowed the credit for 2008 b/c the IRS does not accept your filing status, but you finalize your divorce before the end of 2009, then you may claim the credit on your 2009 tax return.

    Do not call the IRS and volunteer information. If contacted, consult with a tax person before responding.

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  • 1 decade ago

    The IRS routinely asks for proof of eligibility on the FTHB credit. Typically they are asking for proof of a qualifying purchase. You may also be asked to provide proof that you did not live in the former marital home and/or were not an owner of it within 3 years 6/17/2009. Copies of the divorce decree and copies of the quitclaim deed that removed your name as an owner should prove that if the question is asked.

  • Judy
    Lv 7
    1 decade ago

    If by "house went to him in 2002" you mean you were removed from the title then, you are probably OK. Being removed from the mortgage is irrelevant.

  • 4 years ago

    I love how 47 days is "almost 60 days" in your book. A 1040X with a FTHBC is currently predicted to be 12-16 weeks. You are less than 1/2 way there.

  • Anonymous
    1 decade ago

    It's not the mortgage loan that matters; it's the property title. Were you on the property title for the old house?

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