How to File Taxes to Receive The First Time Homebuyer Credit

For those who purchased their first home in 2009, you may be eligible for the first time homebuyer credit.
The credit allows you to claim 10 percent of the home purchase price up to $8,000.
In order to claim the credit, you must have a contract to buy a home by May 1. Also you will need to have closed on the home before June 30.

One of the things that you need to do to obtain this credit is that you must fill out the Internal Revenue Service tax form 5405. There is other crucial information that you must submit with this form in order to get the credit.

Things You'll Need

• IRS tax form 5405
• settlement statement

Instructions

1. 

   **Fill out form 5405**

   Obtain the 5405 tax form from your area library, tax preparation office, or town/city hall administration office. Fill out the form and include pertinent information about the purchase of your home and your adjusted gross income.

2. 

   **Gather other forms to submit**

   You must have a copy of the settlement statement indicating that all parties names, signatures and addresses. If the home is newly built, you must submit a copy of certificate of occupancy showing the owner's name, certificate date, and address of property.

3. 

   **Submit documents to avoid delay of refund**

   Submit other crucial documents based on new legislation that was just passed. These documents pertain to those who owned another home prior to buying their new home. New legislation gives a long time resident of the same main home an opportunity to claim the credit if they buy a new principal residence. If this applies to you, submit your mortgage interest statement, property tax records or homeowner's insurance records.

4. 

   **File taxes**

   Mail your tax forms and submit required documentation to receive the first time home buyer tax credit. Mail the form to the applicable addresses based on where you live. Check the resources below to get the proper address.

Tips & Warnings

• Be patient for your refund. The IRS estimates that the first refunds will go out in March.

• You must only have to repay the credit if the home discontinues to be your main home within a three year period.

• You are not eligible for the credit if you obtain the home through an inheritance.

• Do not try to file your form electronically. You can only mail your form with supporting documents.

Resources

• Mailing addresses