How to Complete the 1040X for the Home Tax Credit
According to the Internal Revenue Service (IRS), first-time homebuyers purchasing homes in 2008, 2009 or 2010 may be eligible to receive a home tax credit. To qualify for the credit, the home purchased must be the primary residence of the tax payer.
For homes purchased in 2008, tax payers are eligible for a tax credit of up to $7,500. This tax credit is treated like a no interest loan and must be paid back to the government in 15 annual installments starting in 2010. For homes purchased in 2009 or 2010, tax payers are eligible for a tax credit of up to $8,000. This tax credit does not need to be paid back unless the tax payer sells the home within three years.
The IRS is allowing tax payers to claim the home tax credit for homes purchased in 2009 on their 2008 or 2009 tax returns. For people that wish to claim the credit on their 2008 return that was due on April 15, 2009, an amendment will have to be submitted to the IRS to receive a refund from the credit. The amendment will require the completion and submission of IRS Forms 1040X and 5405. (See Reference 1.)
Other People Are Reading
Things You'll Need
- Computer with Internet access
- Original federal tax return
- IRS Form 1040X
- IRS Form 5405
Instructions
-
-
1
Open a Web browser and visit the IRS first-time homebuyer credit website. (See Reference 1.) Carefully read the information provided to ensure you are eligible to claim the home tax credit. Click on the link near the bottom of the page for "Form 5405" to download and print the form.
-
2
Review the instructions for Form 5405 and the sections indicating who can and cannot claim the home tax credit. Fill in the General Information (Part I) section by providing the address of the home purchased and the purchase date. For Line C, indicate you are claiming the tax credit for the 2008 tax year by filling in the check box. To amend your 2008 tax return using Form 1040X to receive the home tax credit, this box must by checked.
-
-
3
Complete Form 5405 by providing the information in the Credit section (Part II). The information required will include the purchase price of your home and your modified adjusted gross income. Follow the instructions on the form to calculate the credit amount. This number will later be entered on Form 1040X.
-
4
Download IRS 1040X and the instructions for Form 1040X from the IRS forms and information website. The form and instructions can be found by typing "1040X" in the "Find" text box and clicking "Find."
-
5
Review the instructions for Form 1040X and fill in the personal information requested. For Column A of Form 1040X, fill in the corresponding information from your original tax return. If any of the amounts are being amended in addition to claiming the home tax credit, write the net increase or decrease of these amounts in Column B. Calculate the Correct Amount to be listed in Column C according to the instructions on Form 1040X.
-
6
Fill in the number calculated previously from Line 6 of Form 5405 in Columns B and C of Line 15 on Form 1040X. Perform the calculations according to the instructions on Form 1040X to determine the amount of your refund or payment. Proceed to Page 2 of Form 1040X and fill in Part I only if it is applicable to your status. Fill in Part II indicating the reason for changes to your original federal tax return.
-
7
Check Forms 5405 and 1040X for errors and completeness. Sign both forms and mail them to the address listed on Page 3 of the instructions for Form 1040X.
-
1
Tips & Warnings
According to the IRS first-time homebuyer credit website, eligible tax payers with a binding contract to purchase a home by May 1, 2010 will be able to receive the home tax credit. (See Reference 1.)
