On September 17, 2009, the IRS announced that over 1.4 million American taxpayers have claimed the first time home buyer tax credit.
Many more are expected to claim the credit, although time is running out. Individuals have until November 30, 2009 to close on a qualifying home.
IRS Tax Form 5405
Individuals who wish to claim a first time home buyer tax credit must do so using IRS Form 5405. The tax form is available in PDF format on the IRS website, irs.gov. For exact download instructions, see the article IRS Form 5405, First-Time Home Buyer Credit. This article also describes who doesn’t qualify to take the credit.
Form 5405 Instructions for First Time Home Buyers
The instructions for Form 5405 are included in the same three-page PDF file as the tax form, itself. The first half of the first page is the form, then the next two-and-a-half pages are instructions.
The instructions tell taxpayers everything they need to know about eligibility, available credit amounts, special situations that trigger repayment, and exceptions to qualifying. The instructions also describe who cannot claim the credit.
First Time Home Buyer Tax Credit Form – Attach IRS Form 5405 to Form 1040
Form 5405 is not meant to be mailed in separately. It should be attached to an individual’s or couple’s Form 1040 or other applicable individual income tax return and filed along with that return. The two forms are related; the amount of the tax credit claimed will flow to the individual tax return to offset any tax liability or affect the filer’s tax refund.
Where to Mail Tax Forms – IRS Mailing Address
An individual tax return that has an attached Form 5405 should be mailed to the same IRS address that would be used under normal circumstances. The instructions for each individual tax return form should indicate the appropriate IRS mailing address.
1st Time Homebuyer Tax Credit Requirements, Qualifications – How to Qualify for $8,000
The article $8,000 First Time Home Buyer Tax Credit Deadline explains how to claim the $8,000 tax credit for 1st time home buyers, the last day individuals can buy a house & still qualify for the credit, and when to file Form 5405.
$8,000 versus $7,500 for First Time Homebuyers – Who Is Eligible & For Which One?
Some taxpayers are eligible for an $8,000 tax credit while others only qualify for a $7,500 interest free loan. The article $7,500 & $8,000 First-Time Homebuyer Tax Credits discusses the differences between the two different amounts and terms available to first time homebuyers depending on the home purchase date.
Resources:
IRS website, irs.gov
IRS Tax Form 5405, First-Time Homebuyer Credit
First-Time Homebuyer Credit Provides Tax Benefits to 1.4 Million Families to Date, More Claims Expected (IR-2009-083) retrieved from irs.gov on September 17, 2009.
Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.
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