A few months ago, I did a post on the $7,500 homebuyer tax credit, which is part of the Housing & Economic Recovery Act of 2008 or H.R. 3221. You can see those posts here:
Way’s to Use $7,500 Tax Credit as a Downpayment
How the Tax Credit Applies to New Construction
Quick Faxts about the $7,500 Homebuyer Tax Credit
Now that it is tax time, I’ve received a few questions regarding how to file for the tax credit. So attached to this post is the appropriate IRS Form and instructions for filing for the tax credit. It is IRS Form 5405 Homebuyer Tax Credit. The form includes instructions for how to complete it for those of you who file your taxes yourself.
Even if you have already filed your taxes, you can go back and amend your tax return if you were eligible for the credit, but did not file for it. I’ve had a couple of people e-mail me who asked about this and were able to amend their return without any problem.
I’ve also received a question about someone who is eligible for the return, but their spouse has an IRS lien. If the lien is against one spouse, then you may be able to file separately. But if you are able to do this, you will only qualify for $3,750 of half of the tax credit. This was done to make certain that spouses filing separately wouldn’t receive $15,000 by filing for the full $7,500 rebate. If you have other specific questions, please look at my previous posts first. If what you are looking for isn’t there, please post a comment, and I’ll be sure to answer it.
Joseph Griffin
