How to File Taxes with the Homebuyer Tax Credit
Most people that take advantage of the $8000 first time homebuyer tax credit do not realize how to file for the credit at tax time. Before you rush out to buy your first home, you need to know what steps must be taken to file taxes and claim the homebuyer tax credit. Don't wait until the last minute to learn the filing requirements, which may be a little disturbing if you are expecting a quick refund at tax time.
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Instructions
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Use the 1040 tax form to file your taxes. You must fill out the 1040 form by hand. You cannot efile your tax return if you are claiming the first time homebuyer tax credit. Enter your information and stop when you get to line 69 to figure your tax credit.
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Fill out the form 5405, which is the first time homebuyer credit form. You will enter the date that you purchased the home. In Part II, you will use the calculations to determine the amount that you need to enter on line 69 of Form 1040.
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Place the 1040 Form, 5404 Form, W-2, 1099 and 1098 forms in an envelope with a copy of the closing agreement for the home. Note: You must send along the closing agreement to confirm the home was bought by you and when.
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Mail your return to the IRS address listed for your state in the 1040 Instruction booklet. You can expect the return to take at least six weeks to process after the IRS receives the return.
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