How to Amend a Tax Return for a First Time Home Buyer

You can amend your 2009 tax return if you are a first time homebuyer in 2010.

With the American Recovery and Reinvestment Act of 2009, Congress extended the deadline for first time home buyers to receive a tax credit for purchasing a home. If you make a qualified purchase of a home in 2010 and have already filed your 2009 fedederal income tax return, you can file an amended tax return with the Internal Revenue Service (IRS.)

Things You'll Need

• Originally filed 2009 tax return
• HUD-1 Settlement Statement (most cases)
• IRS Form 1040X
• IRS Form 5405

Instructions

Amending Your 2009 Tax Return

1. Make a qualifying home purchase. You must have been under contract to purchase a home by May 1, 2010 and plan to close before July 1, 2010. For more program guidelines, visit the IRS link located in the Resources section below.

2. Obtain documentation of finalized home purchase. For most homebuyers this will be a HUD-1 Settlement Statement. Requirements for signatures on the HUD-1 Settlement Statements differ from state to state. Ask your mortgage broker about the requirements for your state.

3. Complete IRS Form 1040X. This form is available on the IRS website, or by clicking on the Resources link below. You will need your originally filed IRS Form 1040 for reference when filling out Form 1040X. Instructions for completing Form 1040X are also available on the IRS website.

4. Complete IRS Form 5405. Obtain a copy of this form by following the link in the Resources section. This form will ask you general questions regarding your home purchase. If any question is unclear, consult the instruction form also available on the IRS website.

5. Make a copy of all your documents for your records. Ensure that all documents are complete and signed. A common reason for rejected amended tax returns is missing signatures. Mail the original Form 1040X, Form 5405 and HUD-1 Settlement Statement to the proper IRS regional center. If you are not sure which center to mail, call the IRS at 1 [phone] or follow the link below.

   If all information was filled out correctly and you have no liens or past due taxes, you should receive your check within 6 - 8 weeks.

References

• IRS: The American Recovery and Reinvestment Act of 2009: Information Center

Resources

• IRS: First Time Homebuyer Credit
• IRS: Form 1040X
• IRS: Form 5405
• IRS: Where to File Addresses for Individual Taxpayers Filing Form 1040X