How to Claim Your First Time Homebuyer Tax Credit using form 5405 (Extended Deadline)
A new tax legislation was recently passed to extend the first time homebuyer $8,000 tax credit. Also the new law detailed other changes. Those changes include raising income limitations for claiming the credit.
Other changes involve measures such as those who want to claim the credit must have a contract to purchase a home by May 1.You are also required to have closed on the home by June 30.
There are some other requirements to claim this $8,000 credit. Here are some measures you need to take to claim the credit.
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Instructions
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Obtain a 5405 tax form. You can get this tax form from either the library in your area, local tax preparer or online. If obtaining the form online is convenient for you, go to the Internal Revenue Service's website at www.IRS.gov to get a 5405 form.
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Fill out information about your home purchase and adjusted gross income on the form. Complete applicable sections and information if you are filing jointly. The purpose of the form is so that you can get a possible refund. You may get a refund even if you have taxes to owe.
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Mail the form. Mail the form to the applicable addresses based on where you live. Check out the resources below to get the correct address to mail the form to.
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Tips & Warnings
If you bought the home in 2009, you must repay the credit only if the home discontinues to be your main home within a 3 year period starting in the date you bought it.
You do not qualify for the credit if the following applies to you.
You are disqualified for the credit if you have a gross income of $95,000 or $170,000 if you are filing jointly with a spouse.
Your home financing comes from tax-exempt mortgage revenue bonds.
Your home is outside of the United States.
You acquired your home by inheritance or as a gift.
