 |
Millions of Taxpayers At Risk - Smaller Refunds or Increased Balance Due Next Year. Review Your W-4 Today. |
First-Time Home Buyers CreditSpecial Note to 2009 First-Time Home Buyers: A Tax Fact from The Tax Institute at H&R Block As part of the Housing and Economic Recovery Act of 2008, the federal government is offering up to a $7,500 tax credit for eligible first-time home buyers. The credit was signed into law in July 2008, and is intended to help spur a rebound in the fast-falling housing market. The credit:
Eligible taxpayers must not have owned a home at any time during the three years prior to the purchase. Eligible taxpayers must use new IRS Form 5405 to claim the credit on their 2008 or 2009 tax return. Form 5405, along with instructions on using the form to claim the first-time home buyer credit, is available on the IRS website. If you may be eligible for the credit, you may wish to speak first to your tax professional for assistance in preparing your return. Buyer beware First, the credit must be repaid, making it more of an interest-free loan than an actual tax credit. The maximum repayment period is 15 years, but this period applies only if the property remains the taxpayer’s main home and is not sold, foreclosed on, or converted to business or rental property. If such changes take place, the buyer may have to repay the outstanding credit amount back to the government right away. Fortunately, the recapture of the credit in this situation cannot exceed the gain realized from the sale or other disposition. According to some economic analysts interviewed by CNNMoney.com, the credit isn’t likely to jump-start the faltering housing market as much as intended. Still, lawmakers said they hoped about 1.6 million people would use the credit. Such credits issued in the past have had success. In 1975, Congress passed a $2,000 credit for home buyers, which equals about $8,200 in today's dollars. But the big difference is that the previous credit did not have to be repaid. How is the credit repaid? Think of the credit as a 15-year interest-free loan to be repaid in installments equal to 6 2/3% of the original credit each year. The credit repayment amount is added to the taxpayer’s tax liability each year of the repayment period as an additional tax. Taxpayers should consider the credit recapture amount when computing estimated income tax payments or withholding taxes to avoid underpayment penalties. This Tax Fact is brought to you by The Tax Institute at H&R Block. To view other helpful tax information or listen to our Tax Fact podcasts, visit www.digits.hrblock.com As always . . . everyone’s tax situation is different, so be sure to consult a tax professional or financial advisor before making important financial decisions. This Tax Fact is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice, nor is it intended to be used to avoid IRS penalties.
Views: 49776 | Comments: 251
My wife and I have a house under contract and her father is cosigning the loan. He is not eligible for the tax credit. Does he need to be left off of the deed for us to get the credit?
thanks,  marc , 15 Mar 2009 16:13:32 GMT Taxcut states IRS will begin taking E-files in regards to the $8000 first time homebuyer tax credit starting on March 30th.
http://www.taxact.com/tsupport/FAQDisplay.asp?Question=744
I couldn't find anything on the IRS website confirming this though. kjg , 14 Mar 2009 21:52:35 GMT thanks jason.. i will print the 1040x make copies of everything and send that to the irs asap... i should recieve my direct deposit 2morrow so ill get that in the mail also.. thanks alot chays23 , 12 Mar 2009 11:34:23 GMT Lacey,
I am having the exact same problem. I am trying to claim the $8000 but taxcut keep reverting it back to the $7500 that you have to pay back. When will this be fixed? I bought my house last week. treasurefolk , 12 Mar 2009 05:11:55 GMT Jon: Taxpayers may elect to treat a purchase occurring in 2009 as if it occurred on December 31, 2008 in order to claim the credit on their 2008 tax returns. You would enter the date you acquired the home and Form 5405. This is the date you purchased it (or the date you first occupied it if you constructed your main home). Since you are choosing to claim the credit on your 2008 return for a main home bought after December 31, 2008 and before December 1, 2009 as you indicate in your post; you would check this box on Form 5405. While Form 5405, First-Time Homebuyer Credit, has been revised and is available for download, the IRS is currently not accepting e-filing of Form 5405 for a 2009 home purchase with the maximum credit of $8,000. You could either paper file your return or wait until this form releases which we expect to be soon. Jason, H&R Block Jason , 11 Mar 2009 15:10:34 GMT I bought my first home on 1/15/09 and want to claim the $8k on my tax return. There seems to be a problem somewhere with my tax cut that I can't fix. First, it still says that the credit is for $7,500. Does anyone know when this will be updated? Second, Tax Cut seems to think that I bought my home in Washington DC and therefore don't qualify for the credit since D.C. has some other sort of credit. I bought my house in Texas. Thanks! laceyb53 , 11 Mar 2009 13:30:02 GMT If I purchase a home on 3/26/09, can I claim the $7,500 through efile, and file an 1040X to amended the credit to the correct credit. If so, what date do I use when indicating the purchase date of the home. Or does it matter, since I will be amending it anyways? Thanks! Jon , 10 Mar 2009 16:03:18 GMT creagan: Taxpayers may elect to treat a purchase occurring in 2009 as if it occurred on December 31, 2008 in order to claim the credit on their 2008 tax returns. This election will not cause a 2009 purchase to fall under the 2008 maximum credit limit of $7,500 or the repayment provisions. Since an amended return must be paper filed, you would receive your refund as a check directly from the IRS. Jason, H&R Block Jason , 10 Mar 2009 15:26:10 GMT Dan: You can still take advantage of the $8,000 credit if you purchased your home in 2009, but you will have to file an amended return to claim the additional credit, up to $500, to which youre entitled. You can amend your return but will have to wait until Form 5405 is updated which we expect to be soon. Jason, H&R Block Jason , 10 Mar 2009 15:04:11 GMT chays23: Yes, unlike the credit provided last year, this first-time home buyer credit does not have to be repaid, unless you sell the home or it no longer is your principal residence within 36 months of purchase. You can still take advantage of the $8,000 credit if you purchased your home in 2009, but you will have to file an amended return to claim the additional credit, up to $500, to which youre entitled. To file an amended return you use Form 1040X for the tax year you want to amend. Then you send this form into the IRS along with your original 1040 and any forms or schedules which have changed or have been added to your return. Jason, H&R Block Jason , 10 Mar 2009 14:07:09 GMT mikenkat,
https://sa1.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
chays23 , 10 Mar 2009 10:55:57 GMT I am tring to track my check from the IRS. My first time home buyers check that is. I can not locate a number or person or web address to find out the status and whereabouts of my check. Where do I go or call to get this info. I have been to the IRS web page and there is alot of info but not how to find the status. Is there anyone out there that can help?? mikenkat , 10 Mar 2009 03:54:56 GMT alienerogers: If you constructed your main home, you are treated as having purchased it on the date you first occupied it. For eligible first-time home buyers who purchased a home (or constructed in your situation) after Dec. 31, 2008 and before Dec. 1, 2009, the stimulus bill provides for a refundable credit equal to 10% of the purchase price of the home, up to $8,000. Jason, H&R Block Jason , 10 Mar 2009 00:17:58 GMT kathryndavis23: While Form 5405, First-Time Homebuyer Credit, has been revised and is available for download, the IRS is currently not accepting e-filing of Form 5405 for a 2009 home purchase with the maximum credit of $8,000. You could either paper file your return or wait until this form releases which we expect to be soon. Jason, H&R Block Jason , 10 Mar 2009 00:12:55 GMT t$: While Form 5405, First-Time Homebuyer Credit, has been revised and is available for download, the IRS is currently not accepting e-filing of Form 5405 for a 2009 home purchase with the maximum credit of $8,000. You could either paper file your return or wait until this form releases which we expect to be soon. Jason, H&R Block Jason , 9 Mar 2009 23:50:49 GMT cmnova04: Currently the IRS is not accepting e-filing of form 5405, first-time homebuyer credit, for 2009 home purchase with the maximum credit of $8,000. You could either paper file your return or wait until this form releases which we expect to be soon. Jason, H&R Block Jason , 9 Mar 2009 23:41:57 GMT kristinegerton: Currently the IRS is not accepting e-filing of form 5405, first-time homebuyer credit, for 2009 home purchase with the maximum credit of $8,000. You could either paper file your return or wait until this form releases which we expect to be soon. Jason, H&R Block Jason , 9 Mar 2009 23:40:58 GMT amyrice28: Currently the IRS is not accepting e-filing of form 5405, first-time homebuyer credit, for 2009 home purchase with the maximum credit of $8,000. You could either paper file your return or wait until this form releases which we expect to be soon. Jason, H&R Block Jason , 9 Mar 2009 23:36:50 GMT emmawilliams2009: One of the requirements to be an eligible first-time homebuyer is you (and your spouse if married) did not own any other main home during the 3-year period ending on the date of purchase. Based on the information provided, your husband would not qualify as a first-time homebuyer for this credit since his name is on the deed. Jason, H&R Block Jason , 9 Mar 2009 23:35:05 GMT Bernie19: For eligible first-time home buyers who purchased their main home after Dec. 31, 2008 and before Dec. 1, 2009, the stimulus bill provides for a refundable credit equal to 10% of the purchase price of the home, up to $8,000. You would need to determine the purchase price of the home since the purchase of land could not be used to calculate the credit. Jason, H&R Block Jason , 9 Mar 2009 23:25:45 GMT I have beebn building a house without mortgage slowly since 2007. I should be completed by June 2009. Will I be eligible for the tax credit?
ailenerogers , 9 Mar 2009 23:25:25 GMT lilrat468: The first-time homebuyer credit was added in 2008 for homes purchased on or after April 9, 2008, and before July 1, 2009. The ARRA changes the credit rules for homes purchased on or after January 1, 2009 and before December 1, 2009. Unfortunately, you do not qualify for this credit since you purchased your home before the qualifying dates. Jason, H&R Block Jason , 9 Mar 2009 21:48:52 GMT emiko: You can still take advantage of the $8,000 credit if you purchased your home in 2009, but you will have to file an amended return to claim the additional credit, up to $500, to which youre entitled. Jason, H&R Block Jason , 9 Mar 2009 21:41:32 GMT sgomez12: For eligible first-time home buyers who purchased a home after Dec. 31, 2008 and before Dec. 1, 2009, the stimulus bill provides for a refundable credit equal to 10% of the purchase price of the home, up to $8,000. You can still take advantage of the $8,000 credit if you purchased your home in 2009, but you will have to file an amended return to claim the additional credit, up to $500, to which youre entitled. Homes purchased in 2008 do not qualify for the $8,000 credit. Jason, H&R Block Jason , 9 Mar 2009 21:37:39 GMT romingo80: Currently the IRS is not accepting e-filing of form 5405, first-time homebuyer credit, for 2009 home purchase with the maximum credit of $8,000. You could either paper file your return or wait until this form releases which we expect to be soon. Jason, H&R Block Jason , 9 Mar 2009 21:30:41 GMT tbehrens: For eligible first-time home buyers who purchased a home after Dec. 31, 2008 and before Dec. 1, 2009, the stimulus bill provides for a refundable credit equal to 10% of the purchase price of the home, up to $8,000. And, unlike the credit provided last year, this first-time home buyer credit does not have to be repaid, unless you sell the home or it no longer is your principal residence within 36 months of purchase. Jason, H&R Block Jason , 9 Mar 2009 21:05:23 GMT jeffk5511: Currently the IRS is not accepting e-filing of form 5405, first-time homebuyer credit, for 2009 home purchase with the maximum credit of $8,000. You could either paper file your return or wait until this form releases on March 13, if the IRS does not push this date back. Jason, H&R Block Jason , 9 Mar 2009 19:43:38 GMT kacee: For eligible first-time home buyers who purchased a home after Dec. 31, 2008 and before Dec. 1, 2009, the stimulus bill provides for a refundable credit equal to 10% of the purchase price of the home, up to $8,000. If you constructed your main him, you are treated as having purchased it on the date you first occupy it. Jason, H&R Block Jason , 9 Mar 2009 18:56:19 GMT va_wife: To be eligible for the 2009 maximum credit of $8,000 and the waived repayment obligation, a qualifying first-time home buyer must purchase a home after December 31, 2008 and before December 1, 2009. Since you purchased your home after April 8, 2008 and before January 1, 2009 you are only eligible to claim the 2008 maximum credit of $7,500 which must be repaid over the 15-year period. Jason, H&R Block Jason , 9 Mar 2009 18:24:34 GMT Keith: Currently the IRS is not accepting e-filing of form 5405, first-time homebuyer credit. You could either paper file your return or wait until this form releases on March 14 if the IRS does not push this date back. Jason, H&R Block Jason , 9 Mar 2009 18:08:23 GMT jame_and_jason: Eigible first-time home buyers who purchased a home after Dec. 31, 2008 and before Dec. 1, 2009 may elect to treat a purchase occurring in 2009 as if it occurred on December 31, 2008 in order to claim the credit on their 2008 tax returns. This election will not cause a 2009 purchase to fall under the 2008 maximum credit limit of $7,500 or the repayment provisions. Since you have already filed, you could amend your return to claim the first-time homebuyer credit on your 2008 return or you could claim the credit on your 2009 return. Jason, H&R Block Jason , 9 Mar 2009 18:02:45 GMT Newhouse: For eligible first-time home buyers who purchased a home after Dec. 31, 2008 and before Dec. 1, 2009, the stimulus bill provides for a refundable credit equal to 10% of the purchase price of the home, up to $8,000. Taxpayers may elect to treat a purchase occurring in 2009 as if it occurred on December 31, 2008 in order to claim the credit on their 2008 tax returns. This election will not cause a 2009 purchase to fall under the 2008 maximum credit limit of $7,500 or the repayment provisions.
Mortgage interest is deductible in the year the interest was paid - interest paid in 2009 would be deducted on the 2009 return. Points are more complicated and I would need more information to answer your question. In general, you cannot deduct the full amount of points in the year paid. Because they are pre-paid interest, you generally deduct them ratably (equally) over the life (term) of the mortgage. There are exceptions to the general rule. For more information on how to deduct your points I would recommend you sit down with a senior tax pro at a retail office. Jason, H&R Block Jason , 9 Mar 2009 17:47:00 GMT Mroyegun: Currently the IRS is not accepting e-filing of form 5405, first-time homebuyer credit. Once your home purchase is final you could either paper file your return or wait until this form releases, around March 14 if the IRS does not push this date back. Jason, H&R Block Jason , 9 Mar 2009 15:42:04 GMT dacoz21: Tax Cut software should be updated on March 12 while Tax Cut online should be updated on March 13, both to include the up to $8,000 credit on form 5405, first-time homebuyer credit. Jason, H&R Block Jason , 9 Mar 2009 15:23:02 GMT Kristal: If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount allocated between the owners cannot exceed the smaller of $8,000 ($7,500 for a home purchased in 2008) or 10% of the purchase price of the home. A reasonable method is any method that does not allocate all or a part of the credit to a co-owner who is not eligible to claim that part of the credit. Jason, H&R Block Jason , 9 Mar 2009 15:00:26 GMT I'm going to do an amend, because I just bought my house this month. I wanted to know when you get your credit will it be put on your emerald card or do you have to wait? creagan , 6 Mar 2009 18:48:45 GMT You're right kjg, I could just print the new version of the form from the IRS and fill it out. The problem is that it will change some numbers on the 1040 as well - since Tax Cut won't just let you manually edit numbers, it makes it difficult. At this point, I may just start fresh and file my ammended return with the correct form and bypass Tax Cut altogether - OR, maybe I'll buy turbo tax and redo my return... I'm not sure. I could really use the cash Dan , 5 Mar 2009 21:40:07 GMT Just talked to IRS in reguards to all the information about when these websites will be updated. The guy said it's all about updating the internets 'servers' and he has no clue when it will all be finalized. They were actually told it could take months to even get this new law into effect for 2008 taxes and they're a month + ahead of schedule.
The catch 22 is that he said it could take 6-8 weeks for paper filing. Wait and efile or paper file= which is the quickest?! I always seek a second opinion on things,so I'm on hold again to talk to someone else in the first time homebuyer department. I'll be back... kjg , 5 Mar 2009 19:01:41 GMT Dan if you've already paper filed and just need the amended 5405 form,call IRS and see if you can't just print the 5405 form,and if/any other nessesary amended forms, off of their website instead of waiting for taxact?!
kjg , 5 Mar 2009 18:36:36 GMT I'm ok with filing by paper and using TaxCut - in my case, I've already filed, I just need to do an amendment. However, I can't do ANYTHING until Taxcut puts the new form into the software...
Get on it H&R Block programmers! :) We need a fix - we want our money!
Dan , 5 Mar 2009 18:03:43 GMT if you read further down in the posts...taxact has the updated software and you can file for the new $8k FTHB credit...but the irs is the hold up for most tax software companies. HRblock too slow , 5 Mar 2009 17:55:35 GMT Turbotax 2008 now recognizes the new 5405 form for the $8,000 tax credit for home purchases from January 1, 2009 onward. However, these returns at this time can only be printed and mailed. This is because the IRS is not yet ready to electronically receive the new Form 5405.
Once the IRS is ready to electronically receive the updated Form 5405, then Turbotax will indicate that and then can file it electronically. The same will also most likely apply to Taxcut and other packages. Joey B , 5 Mar 2009 17:54:51 GMT Sorry - I hit refresh - I didn't think it would repost every time I refreshed the page.. sheesh... Dan , 5 Mar 2009 14:38:23 GMT chays23 ---- That is the question I need an answer to as well. We cannot file our returns until Tax Cut is updated with the new 5405 form - look in the top left corner of the current form, it does not have the same date as the new form.. We need H&R block to update Tax Cut before we can claim this correctly...
Dan , 5 Mar 2009 14:36:56 GMT *************************************************
When will Tax Cut be Updated with the new 5405 form? I was expecting to see it in yesterday's update, but nothing...
Should we just buy Turbo tax instead?
Thanks,
Dan
************************************************** Dan , 5 Mar 2009 14:21:30 GMT ok i followed h&r (online) recommendation to file my return for the 7500 since i just bought my house 2/27 (same day i filed) and file for the additional 500 later.. i assume that since the law has already been passed i will not have to pay this back since i meet all the requirements and the IRS will reconize the purchase date even tho it was filed under the current form. am i correct? i called the irs and the lady said they will probably reject my return because its not on the new form.. also how do i go about filing an ammended return if my return is accepted for additional 500? chays23 , 4 Mar 2009 12:25:51 GMT Has there been any update on whether the IRS has fixed the electronic filing to claim this credit? kathryndavis23 , 3 Mar 2009 22:33:48 GMT Portiz,yes,from my understanding it doesn't matter how you got the loan just that you 'bought' a home in 2009 (well actually December 31,08- through dec 09')
This waiting for updated software is rediculous!!! kjg , 2 Mar 2009 16:41:21 GMT Portiz,
I don't see why not! I read the Act on Recovery.gov, and the only "exceptions" I saw were income limitations when exceeding a certain amount. A VA loan is still a mortgage...and you're still buying a house. Our neighbors purchased their house using a VA loan, and have filed for the credit. CJGilliland , 28 Feb 2009 21:13:54 GMT If I purchase a new home this year using my VA Loan can I still be eligible for the $8,000 first time home buyers tax credit? portiz , 28 Feb 2009 15:03:31 GMT CJGilliland and jeffk5511-since you paid to use the online software with a credit card, why not try to dispute the charges? The CC company should back you on this...I mean I don't see why they wouldn't. I have to agree with others on here: HR Block could at the very least have posted the above update MUCH SOONER to let us know they weren't as oblivious to this issue like their automated responses led us to believe. To top it off they STILL didn't announce the 2 week avg. timeframe (posted earlier by someone here) for the software reviewing and approvals-important to many I'm sure. barsto , 28 Feb 2009 06:29:34 GMT I really hope that you aren't serious about paying off credit card debt of "poor" people. That is quite possibly the dumbest idea I have ever heard. And what the heck is taking Tax Cut so long to update some numbers on an existing form? If they wanted to they could get it out in about 12 hours with an average group of computer techs. Tax Man 2008 , 27 Feb 2009 16:03:02 GMT I think the goverment need to pay all credit card balance to bank for poor people this help the economy a lot. or order the bank to waive the money for poor people. GloriaHonorato , 27 Feb 2009 04:55:54 GMT taxact answered my email within 5 hours. And actually answered them directly. HRblock too slow , 27 Feb 2009 02:40:05 GMT My return through TaxAct also got kicked back because the IRS is updating systems. I am ok with that. My problem with H & R wasn't just because the software wasn't updated...it was the lack of communication from H & R Block. As a PAYING customer, I expect timely updates and communications. I expect to get an answer through email if that option is provided, not an automated "Call 1-800" blah answer. I expect the information provided on this website to remain current and I expect the "tax specialists" that we do come across over the phone and in the office to know what they're talking about, or at least have the decency to research the answer. CJGilliland , 27 Feb 2009 01:38:57 GMT Any politician that changes the tax system in the middle of tax season certainly has no clue. FTHB credit is a go for 8k but all software that hit the IRS has to be approved by them. The IRS told me they are scrambling and meeting with the major tax prep companies to get the updates approved to they can allow the full credit. They don't want any more changed tax returns later than I want to wait to file. I decided to file for the 7.5k now and do a change for the rest later - recommended by my HRB tax pro and so far no one can give me a better option. Bitbytaxes , 27 Feb 2009 00:16:40 GMT even though taxact did update their software my federal return for the FTHB credit still got kicked back. I guess the issue is on the IRS side. Here's the reason I got denied.
At this time the IRS is not allowing the new first-time homebuyer credit amount of $8000 to be electronically filed. The IRS does not have an exact date when their systems will be updated however, the IRS is working diligently to update their systems and have given us an estimated timeframe of in the next 2 weeks. HRblock too slow , 26 Feb 2009 19:16:04 GMT Yay I am going somewhere else Thanks CJGilliland your right Taxact updated their software!!! They have the 8000 credit guys!! mariangabby , 26 Feb 2009 16:07:15 GMT Looks like it is time to take business elsewhere, this is BS. At least someone else can get the job done, H&R won't even acknowledge customers t$ , 25 Feb 2009 22:08:15 GMT OK HR - you have your formal announcement from the IRS - http://www.irs.gov/newsroom/article/0,,id=204672,00.html
How about we have an answer to when you will be updating? This post was much better when there was someone from H&R willing to stick their neck out from behind the curtain and answer comments... t$ , 25 Feb 2009 22:05:17 GMT Well, I sent an email to request a refund for the H & R Block software, along with an explanation...and received an automated responce to call the 1-800 number. I'm calling it a loss, I don't have that time. Let it stand confirmed that taxactonline.com HAS updated their software. I just completed my return. CJGilliland , 25 Feb 2009 21:59:21 GMT I'd also like to know how I can request a refund. It's not just because the software hasn't been updated. It's mainly because it's near impossible to get straight or timely answers from H & R Block (without paying $19.95 a question!-ridiculous) ... I just don't have that time to waste. Please, at least answer this question for us. CJGilliland , 25 Feb 2009 19:28:17 GMT Does anyone know how I can cancel my H and R account. I started the process of filing and sence they are taking so long getting the first-time home buyers credit issue solved and not answering are questions I want to go somewhere else. jeffk5511 , 25 Feb 2009 19:27:36 GMT so you have to pay $20 to call and ask them a question? that's terrible...and they are good at not giving you straight answers. I wrote them an email asking my question in a very detailed fashion yet they still emailed me and just said "call this number xxx-xxx-xxxx"
HRblock too slow , 25 Feb 2009 19:15:25 GMT and for those who are care, i don't work for taxact or affiliated with them. I just picked up their name from someone who posted earlier in this comment area. They are the first ones to update their software so i thought i'd pass along the knowledge since i know so many of you are like me and was waiting for someone to update their software. I don't want to put off filing taxes any longer HRblock too slow , 25 Feb 2009 18:56:10 GMT Use Taxact, they just updated their FTHB forms to reflect the $8000 credit for those who purchased in 2009. By the way I think someone from HR block is reading this feedback section because they deleted my earlier post about taxact having updated their forms. I'm tired of hr block failing to get to us about this issue that clearly a lot of people are asking. taxact is cheaper anyway, i'm through with hrblock HRblock too slow , 25 Feb 2009 18:20:51 GMT for those curious it's taxactonline.com. and in case my last two get deleted, taxact has updated their software to reflect the $8k FTHB credit. HRblock too slow , 25 Feb 2009 18:11:07 GMT Turbotax, said the new credit will appear in their mid march software release. Phillysports8982 , 25 Feb 2009 16:15:14 GMT danhaa09, rules are rules.. get over it chays23 , 25 Feb 2009 09:24:39 GMT i think its rediculous that people who buy their homes after dec 31 of 08 and bfore dec 1 09 get up to 8000 and not have to pay it back i just bought a house novem of 08 and i cant get on that tax credit because i was a month earlie so instead i would have to pay it back now how is that fair?
i fell that if there going to do that tax credit for the people who just buy houses this year dont have to pay it back well what about the people that just recently bought a house but was a few months shy why should we have to pay that back its crap danhaa09 , 25 Feb 2009 08:15:08 GMT Another wasted check on any changes to the program for the 8k credit, obvoiusly the plan is to cause confusion and delay after a quick read of the comments. "Those who bought a home after Jan. 1 should claim their credit in 2009", yeah right. tlangevin19 , 25 Feb 2009 02:02:40 GMT Any timeline for when the TaxCut software is going to be updated to allow for us to file for the $8000 first-time buyer credit if we purchased in 2009?
This is getting ridiculous!! cmnova04 , 25 Feb 2009 01:34:26 GMT I am just like everyone else here wanting some answers. I don't mind waiting for the $8000 tax credit to be available but a post with some information from H & R Block would be helpful. I read a message posted from H & R Block on a different link (on this site) that they will be responding to every post through e-mail and then post a blog with some answers. I think if they posted a blog with some answers to be begin with, we wouldn't need a personal response... tizaqt , 24 Feb 2009 18:13:05 GMT HR Blocks own "tax institute" has it right, maybe they can proceed to update everything else. http://digits.hrblock.com/taxtalkandblogs/stimulus/pdfs/arra2009.pdf item 3a. says that it can be claimed in either 2008 or 2009 - any programmers want to update software? Maybe paper filing is the way to go this year...it may be faster than waiting for any of these websites to update. t$ , 24 Feb 2009 18:06:22 GMT Someone posted something earlier about Taxact.com updating their 5405 THIS FRIDAY. I can't confirm it will but thought it needed reposting as it looks like HR Block has removed the post. I've emailed a few folks at HR getting automated responses to call but one nice lady did respond in person simply saying there has been no mention from their head office yet of any change but that she would write me if this changes. I'm giving them about a week-if nothing happens I will start looking elsewhere. barsto , 24 Feb 2009 16:42:46 GMT I called HR Block and was told that the $8000 is not available for 2008 returns. I told them otherwise, the person then went to a database to confirm that I was correct, however, the official position is that there may be an update when IRS.gov notifies them of the change. Still ridiculous, still waiting. However, I have read that Turbo Tax has already implemented the changes we seek. canon2k5 , 24 Feb 2009 16:36:38 GMT Did HR Block have a meeting of the minds and brainwash their employees that the $8000 is not available for 2008 returns? Everywhere I have seen from HR Block, they say that people should wait til 2009 to claim the recently changed First Time Home Buyer credit. According to the IRS and their updated form 5405 - the credit is available for the current filing season. When will HR Block understand this change and make it available to customers? t$ , 24 Feb 2009 16:03:23 GMT I am a homeowner. My fiance is not. We are getting married on May 24th. Is there any way that we are eligible for the $8000 credit if we buy a home this year? Could we file as married filing separately and she claim half of it? Please advise. skiviper2 , 24 Feb 2009 14:24:02 GMT Can you PLEASE give us an ETA on when the software will be updated for the $8000 first time home buyers credit? jeffk5511 , 23 Feb 2009 19:06:24 GMT This is rather ridiculous, I went and picked up the software last night and logged on for updates, waited for them all, and then they havent posted the most important one yet.. H&R Block, you will be losing many customers, just come on here and tell us when the update will be available and you will make many happy.. jkas41 , 23 Feb 2009 18:24:05 GMT I can say this, whether it be H&R Block or not, the first Tax prep site to add the ability to file my taxes to include the amended form 5405 for the new tax credit will be getting my business. I think it's going to be a similar story for others as well. jhaith , 23 Feb 2009 18:18:48 GMT yes, all we really need is an ETA/We're Working on it comment. So far nothing that I've been able to find.
From what I see on the new form they just updated the text, the fields of input are still the same. So basically TaxCut needs some minor programming logic changed and mostly copy changed. I'm sure they have a program/stage/QA process for any program changes. Probably more time will be spent checking for regressions/new bugs introduced.
darthobiwan , 23 Feb 2009 17:46:03 GMT Where is the customer service? We all know someone is reading the comments. Can someone at least make a comment saying we're working on it and it's going to take a week to fix our software!!! The IRS form is exactly the same except for putting 8K in the Box! I should just print my return and white out a couple boxes and do it myself. Keith , 23 Feb 2009 17:22:02 GMT I've been checking back multiple times a day, everyday, since the 15th. Sadly, I haven't found very helpful information on H & R Block's website. I'm rather disappointed this year and may just have to find a new program. I don't mind waiting for the very critical credit, but like others, I'd like to have some kind of notice as to when the software will be updated. When I first put our taxes together, there was no specifics about the $7500 credit, so my return was denied. I already paid H & R for the program, so if I decide to prepare some where else, I'm losing money. To make matters worse, I originally went to an H & R office where they planned to charge me 15 TIMES as much to do my taxes as it would for me to do them...and the tax preparer was rather rude. She found 1/4 of the amount of credits we qualified for...a difference of thousands of dollars. (And insisted that there was no such credit for us since we bought our home in 2009). I've used H & R Block for years now, but these last 2 years have been too stressful. CJGilliland , 23 Feb 2009 07:51:25 GMT I don't mind putting off my taxes a bit since this new $8000 1st-time homebuyers credit was signed but I'd like HR Block to tell us what they are going to do about it. At least answer us here, on your home page or by email to let us know-don't keep us hanging! I'll have to look someplace else to do my taxes and if I leave HR Block because of this-I won't plan to come back. barsto , 23 Feb 2009 07:18:44 GMT IRS has updated form 5405 for the $8000 First Time Home Buyer Credit! When will HR Block update their Software so that we can file our taxes? kristinegerton , 21 Feb 2009 22:03:04 GMT The UPDATED Form 5405 is now available on the IRS website. It reflects the $8000 First Time Home Buyer Credit. However, there is no available tax software reflecting the "new" law. When will HR Block update their software? amyrice28 , 21 Feb 2009 15:16:35 GMT how about some of you actually go and read about the bill that is has passed... that might help you chays23 , 21 Feb 2009 13:07:55 GMT My husband is in title at the house I bought 2 years ago. The loan is under my name. He buy a Townhouse on January 2009. Will he qualify for the First-Time Homebuyer credit? emmawilliams2009 , 21 Feb 2009 04:52:57 GMT So I purchased my home Dec 2007. No first time buyers package for me, huh. Is this true or did I miss it last year? lilrat468 , 21 Feb 2009 04:29:56 GMT slhendrix- Thank you for the link. H&R BLOCK thank you for nothing. romingo80 , 20 Feb 2009 20:13:47 GMT WHEN SHALL THY NEW SOFTWARE BE AVAILABLE TO THE PUBLIC COMMONERS? romingo80 , 20 Feb 2009 19:17:42 GMT When will the software be updated?
jeffk5511 , 20 Feb 2009 18:41:58 GMT Here is the link... for the updated form
http://www.irs.gov/pub/irs-pdf/f5405.pdf
slhendrix , 20 Feb 2009 18:24:02 GMT the new form is out!!! just uploaded on the IRS website today showing the option for $8000 first time homebuyers tax credit!!! I have printed it off!!!
http://www.irs.gov/app/picklist/list/formsInstructions.html?value=5405&criteria=formNumber Rayeshon , 20 Feb 2009 17:30:30 GMT If we claimed the credit for a purchase in '09 for '08 can we get it amended to have the $8000 home buyer credit? emiko , 20 Feb 2009 04:30:14 GMT I went through a divorce in 2008, my ex-wife owned a home prior to our marriage. I just bought a house and wanted to know if I am eligable for the 8000 first time home buyer tax credit? I was never on the deed, have never bought a home, but we filed jointly in for 2007 tax returns. russg , 20 Feb 2009 01:39:16 GMT has anyone heard any info on the new 'home buyers credit' ? we filed early (the end of january) and took the $7500 loan - but as of 2/18 they have created a new 'credit' for 8000.00 and it is a now a credit and doesnt have to be paid back- does anyone have any info on it ? sgomez12 , 20 Feb 2009 01:29:48 GMT AS FOR THE FORMS...keep watching the irs site. I think they will have anything first. They did update something today from the new law but nothing with first time home buyers. slhendrix , 19 Feb 2009 20:54:03 GMT (podbaby) I am in the same position. I have not owned a home and will purchase one after I am married. He has owned a home but everything in the new home will be in my name. If I amend my 08 I was single etc so I would still qualify right? IF YOU FIND OUT LET ME KNOW. I called the IRS and according to the old law we would qualify as long as we met that july 1st date for the old one. But the new may be the same just trying to get confirmation. I will let you know if I find anything or if anyone has advice please let us all know bc I think there are many ppl in this boat. slhendrix , 19 Feb 2009 20:52:35 GMT SOFTWARE UPDATE? $8000 FIRST TIME HOME BUYERS CREDIT.... I WANT TO FILE IT FOR 2008...WHEN IS IT GOING TO BE AVAILABLE? WHY ARE YOU AVOIDING THIS QUESTION? romingo80 , 19 Feb 2009 20:37:32 GMT What about the new stimulus package that President Obahma signed on 02/17/09. Don't first time home buyers now get a $8,000.00 tax credit that does not have to be re-paid? tbehrens , 19 Feb 2009 19:58:29 GMT Software. Update. $8,000. Ready to file.
It's a race between TurboTax and HRBlock to update - first one with their head out of their butt wins my business. ajsmith , 19 Feb 2009 14:54:01 GMT I still haven't seen an answer about when the software will be updated with the new $8000 credit for first time homebuyers. Please let us know! sara1017 , 19 Feb 2009 01:57:23 GMT As far as the new law of 8000 goes, do the same rules apply as far as buying the home from a relative? I am buying a house from my brother and therefore ineligible under the 7500 credit ...Kristi kristi2403 , 19 Feb 2009 00:03:53 GMT When will the software be updated for the $8000 credit? Also, I am closed on a house 2/13/09. This is my first house and I have meet all other criteria for the first home. Can I file for the $8000 credit with my 2008 tax return?
jeffk5511 , 18 Feb 2009 20:19:07 GMT My husband and I signed a construction loan to build our house in October. We are going to be closing our construction loan and rolling it into a mortgage loan in the next few weeks. This is our first home for both of us. Will we qualify for the $8000.00 tax credit? kacee , 18 Feb 2009 17:19:44 GMT When Will the software be updated for the $8000 credit? I'm ready to file. Keith , 18 Feb 2009 16:43:53 GMT My husband and I closed on our house Dec.19 2008, can we claim the $8000 tax credit, which doesn't have to be repaid, or do we have to claim the $7500 tax credit, which does have to be repaid??? va_wife , 18 Feb 2009 16:36:43 GMT When Will the software be updated for the $8000 credit? I'm ready to file. Keith , 18 Feb 2009 16:26:06 GMT we are in the process of buying a home and it is supposed to close on march 12 2009 but we have already filed our income tax can we refile like march 25 or sometime around there or do we have to wait to get the credit on our 2009 returns thanks in advance jamie_and_jason , 18 Feb 2009 16:00:25 GMT I am closing on a house 3/2/09. This is my first house and I have meet all other criteria for the first home. Can i file for the $8000 credit + all points + interest for 2008 tax year or do I have to file it in 2009? Newhouse , 18 Feb 2009 16:00:12 GMT me and my fiance were wondering if our wedding date had to be before the closing date on the house in order to take advantage of the new tax credit? so if we bought a house in march, but didn't get married until september, and still filed married, could we still get the credit? podbaby , 18 Feb 2009 14:23:06 GMT If you are buyinga house on land contract are you still eligible for the credit? bernie19 , 18 Feb 2009 13:36:17 GMT If I close on 18 Feb 09, Can I file my taxes on 19 Feb 09 and claim the first time home buyers tax credit? mroyegun , 18 Feb 2009 04:55:39 GMT Hi, does anyone know when taxcut will be updating his software to reflect the 8,000 homebuyer credit?
Thanks
Chris dacoz21 , 18 Feb 2009 02:48:25 GMT Hi, my husband and I are buying a house with my mother-in-law. Both my husband and I are first-time homebuyers, but my mother-in-law is not. She currently owns her house with her husband. Do my husband and I still qualify for the $8000? If yes, will we qualify for 2/3 of the amount, full amount, or what proportion? Also, does the way we hold the title of the house (tenants in common or joint tenants) have anything to do with how much we can get out of the $8000? Thanks so much for your help. kristal , 18 Feb 2009 02:28:29 GMT Cerestes
If you move into the home prior to your marriage, she will be able to claim the $8,000 credit, assuming the other requirements are met. If you move into the home after your marriage, the fact that she is married to someone who is not a first-time homebuyer will make her ineligible for the credit.
Brenda Schafer, The Tax Institute at H&R Block;MSA, CPA, CFP, EA
Brenda Schafer , 17 Feb 2009 20:08:31 GMT I am in a similar position to slhendrix below. I currently own a home. My fiance has never owned a home. We are planning to buy a house this year. We are also planning to get married this year. Is there any way for him to take advantage of the tax credit at all? We can't cancel the wedding but we thought about just pretending to get married so he could take advantage of the tax credit. Then we could just legalize the marriage next year. Unfortunately we live in a common law marriage state. Any helpful thoughts? ktwalker11 , 17 Feb 2009 07:05:33 GMT HELP...I am not yet married. We are getting married in May 2009. We are looking to have a house built but we are not 100% that it will be done before May 23, 2009. My fiance has owned a home but I have not. Everything would be in my name. We would file as single for our 2009 taxes as well. Will I qualify? I have also heard that even if I did close before our wedding I still won't qualify because I got married in the same year. Is that true? What is the best way to get the 8000?--Sara slhendrix , 16 Feb 2009 23:59:35 GMT My fiance and I are closing on a new construction in April. I'm not a "new home" buyer as its been 2.5 year since I sold my old home. She is however. In the new 8k package will she be able to submit for the full credit while ignoring my participation or do I need to see about giving her full access to the deed? cerestes , 16 Feb 2009 20:41:45 GMT brina08 - The IRS has not yet provided guidance regarding whether early payments may be made. At this point there is only conjecture and various opinions as to what the IRS will allow.
Generally, it would not be advantageous to repay the credit sooner than necessary, however as the credit is an interest-free loan.
David James
H&R Block David James , 16 Feb 2009 19:25:21 GMT Is it possible to make larger payments than the $500 each year? I know we will not be in this home for the next 15 years. I would like to have as little as possible deducted from our sale earning once we decide to sell. I have asked this question to local H&R Blocks, Turbo Tax and the toll free number to the IRS and have not been able to find the answer. brina08 , 16 Feb 2009 18:57:03 GMT Liberty - The answer depends up on whether you purchased your home in 2008 or 2009. If you purchased in 2008, then you are eligible for the original $7,500 (which has to be paid back.)
If you purchased your home in 2009, you are eligible (assuming you meet all other criteria) for the $8,000, which does not have to be repaid. You can take the credit for your 2009 home purchase on your 2008 tax return. If you have already filed, you could do an amended return, or take the credit on your 2009 tax return.
David James
H&R Block TaxCut David James , 16 Feb 2009 16:19:30 GMT johnsmom - yes your son is eligible for the $7,500 credit, assuming he meets all other critera. Since it was a 2008 home purchase the credit amount will have to be paid back.
David James
H&R Block TaxCut David James , 16 Feb 2009 16:11:14 GMT GBrown - sorry but the 2008 credit only applies to home purchases made after April 8, 2008, and before July 1, 2009
David James
H&R Block TaxCut David James , 16 Feb 2009 16:09:15 GMT bsimonsen - YES YOU STILL CAN STILL CLAIM THE 2008 First time home buyer credit, assuming you meet all of the other requirements listed above. The new (yet to be signed) bill does not change the 2008 credit.
David James
H&R Block TaxCut
David James , 15 Feb 2009 20:27:02 GMT thanks for your help david bates48166 , 15 Feb 2009 20:22:03 GMT bates48166 -
Because your wife is not a first-time home buyer you do not qualify for the first-time home buyer credit. Sorry to be the bearer of bad news.
David James
H&R Block TaxCut David James , 15 Feb 2009 20:18:08 GMT briston178 - Which credit are you referring to? The 2008 Housing and Economic Recovery Act provides for a $7,500 tax credit for eligible first-time home buyers.
The credit was signed into law in July 2008, and is intended to help spur a rebound in the fast-falling housing market.
The credit applies to home purchases made after April 8, 2008, and before July 1, 2009. If you are referring to that credit you can file an amended 2008 return to claim the credit.
The new (2009) credit, not yet signed into law, is for first time home buyers purchasing in 2009. This is an $8,000 credit which will NOT have to be paid back. This would impact your 2009 tax return.
David James
H&R Block TaxCut David James , 15 Feb 2009 20:15:49 GMT chays23 - the 2009 credit applies to all first-time home purchases in 2009. *** update ** you can take this credit on your 2008 tax return, just as you could with the previous amount ($7,500). The difference is now the $8,000 credit does not have to be repaid.
David James
H&R Block TaxCut David James , 15 Feb 2009 20:12:13 GMT We closed on our home April 24, 2008, so we qualify for the existing credit but not the newly proposed credit. I have looked everywhere to find out if we can still claim the 2008 credit once Obama signs the new bill on Tuesday and I have found nothing. Do we need to file our taxes before Tuesday?!?!? PLEASE HELP!!!! bsimonsen , 15 Feb 2009 20:10:34 GMT pug3636 - Assuming you meet the other criteria (outlined above) you would qualify for the 2008 credit which was applies to home purchases made after April 8, 2008, and before July 1, 2009.
The new first-time home buyers credit (which will not have to be repaid) is for homes purchased in 2009.
David James
H&R Block TaxCut
David James , 15 Feb 2009 20:08:53 GMT ssatrams - Correct, the 2009 credit increased to $8,000 for qualified first-time homebuyers purchasing homes after Dec. 31, 2008 through Dec. 1, 2009; repayment requirement waived unless sold or no longer principal residence within 36 months.
David James
H&R Block TaxCut David James , 15 Feb 2009 20:06:21 GMT my wife and i bought a house in nov 08, i am a first time buyer but my wife is not, we are both on the new house. do i qualify for the $7500...i tolded to a lady at h&r block but shewasnt for sure, please help me out. thanks josh bates48166 , 15 Feb 2009 19:42:29 GMT I have already filed my taxes for this year and received my income tax check. My question is if I can still qualify for the first time home buyers tax credit? And what I need to do to get it? briston178 , 15 Feb 2009 18:05:50 GMT ok so normally i can figure stuff out on my own but this has me confused.. i am buying my first house and we are going into the inspection process now (tuesday 2/17) and will probably close by march 5th.. so i am waiting to file my taxes until i close. will H&R online "realize" the new govt stimulus package is now non-refundable where you dont have to pay it back? also my fiancee is most likely going to be on the loan with me but she already filed can i claim 100% of the credit? i see there is a spot for that! thanks so much
chris chays23 , 15 Feb 2009 13:59:37 GMT I read that it went through for calendar year 2009. We bought our home on May 15, 2008, does that mean we are out of luck on the credit? pug3636 , 14 Feb 2009 12:27:44 GMT Now That the stimulus package has been passed and most likely will be signed by the president. What changes are there to the first time homebuyers credit, and homebuyers in general? I heard that it may indeed become a true credit in that it does not need repaid and that it has been increased to 8000.00. Is this in fact the case? ssatrams , 14 Feb 2009 02:22:02 GMT brianp -
The IRS only asks that you retain your closing statement so that you can document the purchase date if your return is audited. If audited, you will likely be asked to submit a copy of the closing papers.
Brenda Schafer, The Tax Institute at H&R Block;MSA, CPA, CFP, EA
Brenda Schafer , 13 Feb 2009 22:49:59 GMT
tkochaudio -
There was a proposed credit that would apply to purchases of foreclosed homes. Unfortunately, that provision was not included in the compromise. Sorry.
Brenda Schafer, The Tax Institute at H&R Block;MSA, CPA, CFP, EA Brenda Schafer , 13 Feb 2009 22:48:41 GMT mary - It appears that because you were still married at the end of 2008, you must consider the fact that your soon-to-be ex-spouse is not a first-time homebuyer. Unfortunately, that means that you wont qualify for the credit, even though he is not on the deed.
Brenda Schafer, The Tax Institute at H&R Block;MSA, CPA, CFP, EA Brenda Schafer , 13 Feb 2009 22:47:42 GMT fancyit - you still qualify under the original first time home buyer's credit ($7,500) assuming you meet all of the other requirements. The newly proposed program will not impact you.
David James
H&R Block TaxCut David James , 13 Feb 2009 22:42:29 GMT vikki - I contacted our customer resolution team to reach out to you, they checked and saw that you have already e-filed. Let us know if you still need anything.
David James
H&R Block TaxCut David James , 13 Feb 2009 22:40:10 GMT My husband and I are going through a divorce. He owns the house where I used to live. He bought it before we got married. I was not on the deed or on any document. Now, I bought a house in Sept. 2008. It is my first house -to be my primary residence. My husband is not on the deed for my house however I was still married when I closed on my house. My question is, to qualify for first time home buyer, you and your spouse (if married) should meet the 3-year rule. There is no question I am first time home buyer per the definition of FTHB and I purchased the home to be my primary residence since I was going through divorce but my spouse is not a FTHB. However, the purchase of my house was not a joint purchase with my spouse. It was my own, and only in my own name. If this 3-year rule only applies to the individuals who are DEEDED to the said purchased residence, then I guess I would qualify for the FTHB tax credit? Eventhough I was still married when I closed, the home was deeded solely to me, who had not owned a property within the past 3 years and purchase the house to be my primary residence. Does anybody have an answer if I legally qualify for the credit? I already filed my 2008 taxes but did not claim. Mary , 13 Feb 2009 20:08:08 GMT my wife owns a house that she bought before we met now the house sits empty i bought our house april of 08' by my self as first time home buyer but put her name on the deed because of deployment to iraq will i still qualify for the credit thank for any info doug, raberfamily , 13 Feb 2009 17:07:51 GMT I purchased a bank owned foreclosure home in Sept. 08 and have filed with the first time home buyer 7500 credit. I am now hearing about an additional credit I may be eligible for because it was a foreclosed property. Does such a credit exist and if so, what form do I need, and can I ammend my file and add this? tkochaudio , 13 Feb 2009 03:41:54 GMT This so called "tax credit" will do nothing to stimulate your personal economy. All that is going to happen is that people who use this are going to end up with more "DEBT" to the IRS over the course of the next 15 years (the repayment period). What first time home buyer wants to keep their home for 15 years prior to reselling and moving up? When you return something to a store for a CREDIT do you lose that credit later or have to pay it back? No, its a CREDIT! If the government wants to do something for the economy then cut tax rates which will allow people to keep more of their money in their pockets. I am already a homeowner and what do I get in the way of a stimulus, nothing. No $7,500.00, no lower tax rate, nothing. I have a job, pay my bills, and have never filled bankruptcy but what do I get, stuck paying higher taxes to pay back the billions of dollars congress is giving away. I would avoid taking this tax credit at all costs. If you cant purchase a home without it then you shouldnt be purchasing in the first place. Save another year and then buy, you will be better off in the long run. Al in Tennessee , 13 Feb 2009 03:07:49 GMT I bought my first home on March 29, 2008. I have never owned a home before, so do I qualify for this credit since this is my first home? I am a little confused on the dates since it states that if a person has not owned a home in the previous 3 years, they would qualify. If I do not qualify, is there anything I can do since I bought my home 9 days later? Thanks for your help! shersull , 12 Feb 2009 22:25:32 GMT I bought a house and closed in February 2008--what recourse if any do I have and why would they choose a date in the middle of the calendar? Who could I contact--we could really use this break, as my husband lost his job after we bought the house!
Any credits if you lost your job in 2008? We are filing now. G Brown , 12 Feb 2009 20:05:50 GMT We closed on the loan to build our house Oct '08. We will move in Feb 14 2009. kappacleo , 12 Feb 2009 18:38:27 GMT My son purchased his first home in Oct. 08. I co-signed on the loan with my son -- but he lives in the home and I live in a separate home I've owned for years. Since my son has never owned a home before -- can he claim the first time home buyers credit? JohnsMom , 12 Feb 2009 18:34:20 GMT How will the IRS validate the date of purchase? brianp , 12 Feb 2009 17:18:46 GMT As of today, Feb 12, the home buyer credit in the stimulus bill has been modified. Does anyone know what it contains now? My husband and I were first-time home buyers in August 2008, do we still qualify for this new modified tax credit? fancyit , 12 Feb 2009 12:19:55 GMT I have completed my taxes using H & R Block's Tax Cut Free Version. I qualify for this credit. When I try to file I keep getting an error that the form for this credit isn't available and to check back at the end of January. Obviously, now in Feb the form is available. Why can't I file? vikki , 12 Feb 2009 00:59:07 GMT Now that it looks like the stimulus that will be passed will NOT include the $15k credit does that mean that first time home buyers are still eligible for the $7.5k "loan" credit that was previously in place? klgordon , 12 Feb 2009 00:24:47 GMT I HAVE ALREADY FILED MY 2008 TAX RETURN I QUALIFIED AND TOOK ADVANTAGE OF THE FIRST TIME HOME BUYER TAX CREDIT(LOAN) FOR 7500. I HAVE ALREADY RECEIVED MY MONEY. NOW IM HEARING THERE IS A BETTER FIRST TIME HOME BUYER TAX CREDIT BEING NEGOTIATED. IF THIS PART OF THE STIMULUS BECOMES LAW CAN I AMMEND MY 2008 TAXES TO RECIEVE THE DIFFERENCE IN THE MONEY I WOULD HAVE RECEIVED HAD I JUST WAITED TO FILE. I FEEL RIPPED OFF MAINLY BECAUSE I HAVE TO PAY IT BACK BUT OTHERS WONT. LIBERTY , 11 Feb 2009 23:03:13 GMT Carlos....
As long as she did not have an ownership interest in the home that was her main home for the last three years, she is still a first-time homebuyer.
Eligible taxpayers can have an interest in other real estate. They just can't have owned their main home in the last three years. As long as you meet the other requirements, you will qualify for the credit.
best,
Brenda Schafer, The Tax Institute at H&R Block;MSA, CPA, CFP, EA
Brenda Schafer , 11 Feb 2009 21:57:39 GMT My wife and I bought our first house on Dec'08. However my wife has a 25% ownership of her parents' home in another country outside US. She lived there many years ago when she was still with her parents. Do we still qualify for the credit? Thank you for the advice. Carlos Carlos , 11 Feb 2009 18:19:36 GMT Jill,
The current version of the Senate bill indicates that only homes purchased after the date of enactment will qualify for the $15,000 credit. If the bill is enacted by Feb 23 (which is quite possible), you will qualify for that credit if all other requirements are met.
Actually, the new $15,000 credit does not require you to be a first-time homebuyer, so the co-owner may qualify as well. The bill gives the IRS the responsibility to determine how unmarried individuals can divvy up the credit. If the IRS takes the same approach as it did with the first-time homebuyer credit, they will be able to divvy up however they want as long as the total credit claimed doesn't exceed $15,000.
Brenda Schafer, The Tax Institute at H&R Block;
MSA, CPA, CFP, EA Brenda Schafer , 11 Feb 2009 16:46:27 GMT shorte10570 - The current version of the Senate bill indicates that only homes purchased within one year after the date of enactment will qualify for the $15,000 credit.
David James
H&R Block TaxCut David James , 11 Feb 2009 16:35:09 GMT Julia,
Yes you will be able to particpate in the first time home buyers credit. You can apportion the credit amongst the purchasers. In your case you could take the whole credit amount.
David James
H&R Block TaxCut David James , 11 Feb 2009 15:58:27 GMT If the new $15,000 tax credit is passed, will it apply to all homes purchased in 2009, or is it only for homes purchased after the date on which the bill is signed into law? I am supposed to close on February 24th and wonder if I should try to delay until the bill passes.
Also, if I am a first time buyer purchasing the home together with a non-first time buyer (we are not married, but the mortgage is in both of our names and both names will be on the deed), am I correct that I should still qualify for the full $15,000 credit? Thanks for any advice,
Jill Jill , 10 Feb 2009 18:49:46 GMT I was wondering... I bought a house during the eligible time frame I colsed August 28, 2008. This was also before i was married. My father is on the deed. I am now married and my husband and I are on the mortgage, my father is not. My father is not a first time home buyer but my husband and I are. Would we be eligible to partake in the credit? JuliaS , 10 Feb 2009 17:32:00 GMT My question would be that I have already filed my taxes for 2008 and I did qualify for the initial credit. Now if this new $15000 is approved, would I be able to get the additional $7500 and the repayment of the previous $7500 be cancelled? shorte10570 , 10 Feb 2009 07:10:37 GMT soardy -
I did some checking. From what I have been told the IRS is manually verifying that the taxpayer is indeed qualified to receive the credit, thus the delays in payment. It is not clear how quickly this process will happen. Would be curious to know how long it took (or takes) for you to get yours.
David James
H&R Block TaxCut David James , 9 Feb 2009 22:21:46 GMT brodysmom - Yes. For homes purchased after 12/31/08 and before 7/1/09, the taxpayer can elect to treat the purchase as if it occurred on 12/31/08. Doing so enables them to claim the credit on their 2008 returns. In your case you would need to file an amended return since you have already filed.
Note that Congress is contemplating changes to the first time home-buyer credit. You will still qualify to claim the refundable credit, but it may not be required to be repaid. Or, there may be a new nonrefundable credit up to $15,000 that does not need to be repaid. You may want to wait to file your amended return until the bill is signed into law.
Hope this helps.
David James
H&R Block TaxCut David James , 9 Feb 2009 20:10:53 GMT brodysmom - Yes. For homes purchased after 12/31/08 and before 7/1/09, the taxpayer can elect to treat the purchase as if it occurred on 12/31/08. Doing so enables them to claim the credit on their 2008 returns. In your case you would need to file an amended return since you have already filed.
Note that Congress is contemplating changes to the first time home-buyer credit. You will still qualify to claim the refundable credit, but it may not be required to be repaid. Or, there may be a new nonrefundable credit up to $15,000 that does not need to be repaid. You may want to wait to file your amended return until the bill is signed into law.
Hope this helps.
David James
H&R Block TaxCut David James , 9 Feb 2009 20:09:39 GMT klgordon ....
Again, If the nonrefundable $15,000 replaces the $7,500 refundable credit, the way the Senate provision is worded, the change will take effect as of the date the bill is signed into law by President Obama. If the provision is passed as written, you should remember that the credit can be taken over a two year period. This would help reduce the amount of credit that would be lost due to the tax liability limitation. Even though the current-law credit is refundable, it has to be repaid. The proposed nonrefundable credit does not have to be repaid.
I know this is very confusing; hope this helps!
Brenda Schafer, The Tax Institute at H&R Block; MSA, CPA, CFP, EA
Brenda Schafer , 9 Feb 2009 19:35:55 GMT klgordon ....
If the nonrefundable $15,000 credit replaces the $7,500 refundable credit, the way the Senate provision is currently worded, the current law will be repealed as of the date the bill is signed into law by President Obama. If the provision is passed as written, you should remember that the proposed nonrefundable credit can be taken over a two year period. This would help reduce the amount of credit that would be lost due to the tax liability limitation. Even though the current-law credit is refundable, it has to be repaid. The proposed nonrefundable credit does not have to be repaid.
That being said, its likely that the 2009 stimulus bill will be signed into law this month. If there is a change to the homebuyer credit, you will be affected. Theres no guarantee that the Senate amendment will be included in the final bill, however. Previous versions of the bill removed the repayment requirement for the refundable credit for home purchased in 2009. Maybe that provision will go instead, and youll be even better off than under current law.
Best, Brenda Schafer, The tax Institute at H&R Block; MSA, CPA, CFP, EA
Brenda Schafer , 9 Feb 2009 19:33:57 GMT Glendola Cooper ....
Yes. For homes purchased after 12/31/08 and before 7/1/09, the taxpayer can elect to treat the purchase as if it occurred on 12/31/08. Doing so enables them to claim the credit on their 2008 returns.
Note however, that Congress is contemplating changes to the first time home-buyer credit. You will still qualify to claim the refundable credit, but it may not be required to be repaid. Or, there may be a new nonrefundable credit up to $15,000 that does not need to be repaid. You may want to wait to file your return until the new bill is passed so you can consider any changes that are made to the law.
Best,
Brenda Schafer, The Tax Institute at H&R Block; MSA, CPA, CFP, EA
Brenda Schafer , 9 Feb 2009 19:32:28 GMT emmysmommi ...
Sorry. We arent sure why Congress picked April 9, 2008, but unfortunately, the purchase of your home in January 2008 will not qualify for the credit.
Brenda Schafer, The Tax Institute at H&R Block; MSA, CPA, CFP, EA
Brenda Schafer , 9 Feb 2009 19:25:24 GMT I read somewhere that you can file your taxes first and then file an amendment to your taxes to get the $7500 tax credit still this year and not have to wait until 2009. Does anyone know about this? We have already filed our taxes and are now buying a home in March. I hope we can still get the credit now to help with home improvements. brodysmom , 9 Feb 2009 19:00:25 GMT I bought a house in Jan '08. I kno i don't qualify for the credit but I think its stupid that they just picked April 9th right off the calender. It should be any home bought in '08. Is there any kind of tax credit I can claim for my house? emmysmommi , 9 Feb 2009 14:34:22 GMT I'm getting ready to close on my first house in mid-march. I would much prefer the refundable $7500 to the nonrefundable $15000. From what I understand the new credit if passed will immediately take over for the previous one. It requires a 5% minimum down payment on the home as well. Even though the first requires repayment, I am a full time student who works, and that additional cash would help me buy what I need. Because I'm a student through education credits I already get back what I pay in, so the newer credit won't really help me. Is there any way to file now before I close to get the $7500 credit? klgordon , 9 Feb 2009 13:36:41 GMT I am getting conflicting reports on when a 2009 first time homebuyer can claim his tax credit. Is it possible for someone to have closed their loan on January 15th, 2009 to claim their Tax Credit of $7500 on their 2008 Tax Return. I am getting conflicting information on whether this is "law or not". HELP Glendola Cooper , 8 Feb 2009 22:59:21 GMT I'm set to close in Mid-March on my first home. I would much rather take this $7500 interest free loan than the non-refundable $15000 tax credit that is being proposed. The new proposal will immediately go into effect if I understand properly, overwriting the $7500 credit previously. Is there anyway I can file before I close and this law goes into effect so that I can get the $7500 refundable credit instead of the $15000 non-refundable one? klgordon , 8 Feb 2009 21:12:46 GMT fmmcarthy, - The legislature is working to make this newly proposed stimulus package into law quickly. My guess is yes, it will be done and signed into law by the president well ahead of April 15th.
No, what is currently being proposed is that you would NOT have to repay the credit (currently $15,000)
David James
H&R Block TaxCut David James , 8 Feb 2009 18:24:00 GMT Does anyone know if the proposed $15,000 tax credit will be in law prior to the April 15th deadline to file? And if so, does it have the same conditions as the current $7,500 tax credit, ie repayment each year til paid back? fmmcarthy , 8 Feb 2009 07:30:58 GMT Dawn, the short answer is we have to wait and see.
Please remember that this new home buyer credit ($15,000) is not law yet. The House version of the Stimulus Package included a $7,500 non-repayable credit; the Senate version, $15,000. Therefore, the House and Senate are not in agreement and this will need to be resolved between both Houses. The proposals will go through several iterations before final voting by both Houses and then any stimulus package becomes law only when the President signs it.
Then the IRS will provide direction regarding the original and any new (larger) home buyer credit.
David James
H&R Block TaxCut David James , 8 Feb 2009 02:06:52 GMT We filed our taxes with HR Block last week, we did the 2-3 day return, we received our return on our Emerald Card on Jan. 30th. We qualified for the tax credit and took it. Does anyone know when we will actually receive the money from it? No one at our HR Block knew the answer because we were only the 2nd persons to come in and qualify for it? Thanks so much for any answers!!! soardy , 7 Feb 2009 20:18:24 GMT My husband and I bought our first home on Jan 21, 2009 and I have already filed for the $7500 tax credit. If the $15000 tax credit passes, do I amend my tax return for 2008 to get the additional $7500 or do I wait to claim the additional on our 2009 tax return. Also if I do amend my tax return does the first $7500 I got still need to be repaid or would it fall under the new 15000 bill. I know that nothing is set yet but what is the general opinion right now. Dawn , 6 Feb 2009 20:01:59 GMT Shawn ...
The Senate proposal is just that; a proposal that may or may not make it into the final stimulus bill.
Congress is going to be arguing, agreeing, and tweaking the stimulus bill over the next several weeks (remember, this Senate proposal is not in the House bill).
But yes, the Senate proposal is for calendar year 2009.
Best,
Denise Sposato, H&R Block Denise Sposato , 6 Feb 2009 16:39:28 GMT e_lou....
If you are eligible for the first-time home buyers credit, you may elect not to take advantage of this credit.
Since you point out that you plan on selling your home within 3 years, it may not make good financial sense for you to claim it.
Best,
Denise Sposato, H&R Block Denise Sposato , 6 Feb 2009 16:36:31 GMT jto ...
The current Senate proposal is for homes purchased during calendar year 2009.
Unlike the current refundable first-time homebuyer credit, this one doesnt have to be repaid unless the house is sold or ceases to be your principal residence within 24 months.
But be forewarned: These are just proposals. Congress is going to be arguing, agreeing, and tweaking the stimulus bill ver the next several weeks. This provisions and any of the others could be tweaked right out of the final bill.
Best regards,
Denise Sposato, H&R Block
Denise Sposato , 6 Feb 2009 16:34:33 GMT We purchased a home in December 2008. Would this purchase qualify under the Senate version of the stimulus package for the $15,000 credit? jto , 6 Feb 2009 02:59:40 GMT This is not really a credit, it is a loan. Trickery! I don't know if it is worth claiming. I do not want to owe the IRS for the next 15 years of my life and I plan on selling my house within 3 years, using the equity towards a new home, I will have to pay the remaining balance back to the IRS from my earnings.. not a good deal. Is this optional? e_lou , 5 Feb 2009 21:52:09 GMT So to clairify, the Senate version is $7500 for 2008 1st time home buyers and $15000 for 2009 1st time homebuyers? shawn2180 , 5 Feb 2009 21:10:55 GMT shawn....
The Senate version of the stimulus package includes homes purchased in 2009.
Denise Sposato, H&R Block Denise Sposato , 5 Feb 2009 20:58:28 GMT joshhed ...
No, the Senate proposal does not repeal the current first-time home buyer's credit.
Denise Sposato, H&R Block Denise Sposato , 5 Feb 2009 20:57:29 GMT mb6055...
Nope.
Because you are using the married filing separate (MFS) filing status, you are limited to claiming a maximum credit of $3,750 (half of the full amount). The tax law is replete with limiting or denying deductions and credits to MFS filers. Remember that you also must meet the test to be a first-time homebuyer. Because you are still married (with an exception that Ill discuss later), you have to consider whether your spouse would qualify to be a first time homebuyer if she had also purchased the house. I know it sounds crazy, but its true. As long as you and your spouse have not owned a home in the last three years, all is well. If your or your spouse have owned a home in the last three years, you cant claim the credit.
Exception. If you have a dependent child at home and lived apart from your spouse for the last six months of the year, you should contact a tax professional to see if you qualify to be treated as unmarried for tax purposes. In this case, you would use the Head of Household filing status (which is much better than the MFS filing status in many ways), and as long as you meet the qualifications to take the credit, you could claim up to $7,500.
Best regards,
Brenda Schafer, The Tax Institute at H&R Block; MSA, CPA, CFP, EA
Brenda Schafer , 5 Feb 2009 20:48:16 GMT Would the new version passed by the Senate erase this tax credit? In other words, if the new version makes this obsolete and prior purchases from April 8th to the date of the stimulus passage do not qualify under the new provisions, would it be better to file your taxes as soon as possible to avoid the discontinuation of this tax "credit"? joshhed , 5 Feb 2009 20:38:13 GMT Does the Senate version of the stimulas package include home purchases in 2008? shawn2180 , 5 Feb 2009 19:47:18 GMT I purchased a home and qualify for the tax credit in 2008. I am married and file seperatley and I purchased the home as my sole and seperate property. I believe I should be able to get the full $7500 but do not see anywhere on form 5405 that I am able to enter this information. mb6055 , 5 Feb 2009 18:04:21 GMT slick ...
Sorry to be the bearer of bad news, but your trailer does count as a residence.
If you owned that trailer in the last three years, you are correct that you are not a qualified first time homebuyer. Unfortunately, under the new law, a first-time homebuyer means "any individual if such individual (and if married, such individual's spouse) had no present ownership interest in a principal residence during the 3-year period ending on the date of the purchase of the principal residence to which this section applies." [emphasis added] If you are not a qualified first-time homebuyer, neither you nor your wife can claim the new first-time homebuyer credit.
Brenda Schafer, The tax Institute at H&R Block; MSA, CPA, CFP, EA
Brenda Schafer , 5 Feb 2009 17:37:25 GMT LadyBird ...
The IRS has not provided guidance regarding whether early payments may be made.
Generally, it would not be advantageous to repay the credit sooner than necessary, however.
Best,
Brenda Schafer, The tax Institute at H&R Block; MSA, CPA, CFP, EA
Brenda Schafer , 5 Feb 2009 17:28:06 GMT home09 ....
Please remember that this is not law yet. The House version of the Stimulus Package included a $7,500 non-repayable credit; the Senate version, $15,000. Therefore, the House and Senate are not in agreement and this will need to be resolved between both Houses.
The proposals will go through several iterations before final voting by both Houses and then any stimulus package becomes law only when the President signs it.
Denise Sposato, H&R Block Denise Sposato , 5 Feb 2009 17:06:46 GMT I closed escrow on a home at end of January of 2009. With the new stimulus package and today hearing that senate voted (voice vote) on raising first time home buyers tax credit to $15,000 no payback can I claim that in my 2008 taxes? home09 , 5 Feb 2009 06:03:34 GMT Thank you, I spent hours calling the IRS and others trying to figure this out. Thank you so much.
Brannon nocturnmidnight , 5 Feb 2009 01:17:04 GMT I was wondering if my wife and I quilified for the first time home buyers credit. I prevouisly owned a trailor but this is her first home to buy. slick , 5 Feb 2009 00:36:59 GMT taxpayer09 ...
Sorry! The actual purchase date is the date that must be considered. The law specifically states that the home must be purchased after April 8.
Regards,
Brenda Schafer, The tax Institute at H&R Block; MSA, CPA, CFP, EA Brenda Schafer , 4 Feb 2009 18:48:32 GMT nocturnmidnight ....
You're not missing anything.
The IRS Form 1040-X just wasn't updated to include this credit. You can claim the credit on an amended return. You'll need to complete Form 5405, of course. Then enter the credit in the net change column on line 15. Be sure to add an explanation of the change in Part II of the Form 1040X. Attach the Form 5405 with the amended return.
Hope this helps ...
Best regards,
Brenda Schafer, The Tax Institute at H&R Block; MSA, CPA, CFP, EA
Brenda Schafer , 4 Feb 2009 18:45:16 GMT JustWondering.....
The new law specifically prohibits the credit for homes purchased from a relative. Congress may have been attempting to limit potential abuse of the credit. Everyone who purchases from a relative gets caught in the net, however.
Regards,
Brenda Schafer, The tax Institute at H&R Block; MSA, CPA, CFP, EA
Brenda Schafer , 4 Feb 2009 18:42:31 GMT ANN ...
The repayment of the credit will be administered as an additional tax on your return for each year that the repayment period applies.
Thus, if you have enough withholding to cover it, the repayment will be taken out of your withholding.
Best regards,
Brenda Schafer, The Tax Institute at H&R Block; MSA, CPA, CFP, EA Brenda Schafer , 4 Feb 2009 18:40:52 GMT Does anyone know if this tax credit can be repaid in larger payments than $500, and/or be repaid at a quicker rate than 15 years? LadyBird , 4 Feb 2009 16:36:41 GMT WILL THE REPAYMENTS OF THE LOAN COME OUT OF YOUR TAX REFUND EACH YEAR OR DO YOU HAVE TO MAIL IT IN. ANN , 4 Feb 2009 13:16:31 GMT Can someone please tell me why I can't take this credit just because I am buying my house from a relative? I'm a single mom with 2 children and I could really use this credit. Had I known this little fact, I would have looked for another home. What difference does it really make who the house is purchased from? Just Wondering , 4 Feb 2009 13:14:40 GMT We closed on our home on April 8th. We did not move in till April 9th. Will we qualify?? taxpayer09 , 4 Feb 2009 12:47:50 GMT I filed my 2008 taxes using the 1040A before I realized that I qualify for the FTHB credit. Now, when I try to file the 1040X, I can't figure out where to put the info regarding the credit. There are places for the EIC and others, just not the First Time Home Buyers Credit. Am I missing something? nocturnmidnight , 4 Feb 2009 02:08:23 GMT Why can't I take this credit just because I purchased from a family member? I had to get a loan just like everyone else. I don't see what difference it makes who you purchase from. Wish now that I had purchased from John Doe. Seems very unfair. JustWondering , 4 Feb 2009 01:24:04 GMT cisco2111
If that were to happen, the IRS would provide direction around how to handle the difference.
To get all of the details around the first time home buyers credit, see the irs information center:
http://www.irs.gov/newsroom/article/0,,id=187935,00.html
David James
H&R Block TaxCut David James , 3 Feb 2009 21:20:36 GMT jamesR - you can allocate the credit as you wish between you and your father. The total credit amount cannot exceed $7,500. If your father is not eligible, you can take the full amount.
David James
H&R Block TaxCut David James , 3 Feb 2009 21:10:31 GMT my father cosigned for my home purchased in oct 2008 and he is on the deed also.this is not his primary residence as he owns his own home so obviously he doesnt qualify but do I? I meet every other requirement. jamesR , 3 Feb 2009 20:32:04 GMT If the first time home bayer tax credit increases what will happen? cisco2111 , 3 Feb 2009 19:59:01 GMT carolyn cecil ...
I'm glad you asked that.
If you aren't married to any of the other co-owners, the answer is "yes," you may claim the entire credit.
The IRS recently issued guidance on how the credit is claimed by multiple, non-married owners of the same home. You can read the release at: http://www.irs.gov/pub/irs-drop/n-09-12.pdf
Of course, if your income is high enough, you may be phased out of the credit. Read more about first-time home buyer credit on the IRS web site at" http://www.irs.gov/newsroom/article/0,id=187935,00.html
Best regards,
Brenda Schafer, The tax Institute at H&R Block; MSA, CPA, CFP, EA Brenda Schafer , 2 Feb 2009 16:45:45 GMT HW - To take half of the maxiumum $7,500 credit, simply input your purchase price as $37,500; it will calculate your credit as $3,750. Sorry if the software isn't clear on how to do this.
David James
H&R Block TaxCut
David James , 30 Jan 2009 21:18:40 GMT Jenbug - According to the IRS, only purchases of a main home located in the United States qualify, and the home must have been purchased after April 8, 2008, and before July 1, 2009. For a home you construct, the purchase date is the date you first occupy the home.
David James
H&R Block TaxCut
David James , 30 Jan 2009 21:14:14 GMT carolyn cecil -
Good news - Two unmarried individuals buying a principal residence may allocate the credit among the individual owners in any reasonable manner. The total amount allocated between the owners may not exceed the smaller of $7500 or 10% of the purchase price of the house. So if you claim more than a $75,000 purchase price your credit will be the full amount of $7,500.
David James
H&R Block TaxCut
David James , 30 Jan 2009 21:11:40 GMT Jeremycafe -
For an eligible purchase in 2009, yes you can choose to claim the credit on either your 2008 (or amended 2008 return) or 2009 return.
David James
H&R Block TaxCut
David James , 30 Jan 2009 21:05:10 GMT peteheat - The credit is equal to the lower of 10% of the purchase price of the home or $7,500 for most taxpayers ($3,750 for married filing separate filers).
To claim your half ($3,750) you simply need to input the purchase price on your return to $37,500. The software will then calculate your credit as 10% of this, or $3,750.
I'm sorry your initial inquiry didn't yield the proper response.
David James
H&R Block TaxCut
David James , 30 Jan 2009 21:01:36 GMT Here is my problem that I found with applying the First-Time Home Buyers Credit on H&R block online. I purchased a house with my fiance in September 2008. So we are filing separate and there is no option to take half of the First-Time Home Buyers Credit (which is allowed) online. The options is take all or none. Why don't they have this option in place? HW , 30 Jan 2009 02:26:12 GMT What if we purchased our home in Mar 08, 1 month before April. Are we qualified or not? Jenbug , 30 Jan 2009 01:02:09 GMT I did the first homeowners credit. I'm wondering I only got to claim half of the price of the total of the house because I am not the only one on my deed. But the other person cant claim anything because she is not a frist time home owner. I claimed closing costs, taxes and everything else. Can I claim the full price of the house?? the other part is just going unclaimed?? carolyn cecil , 30 Jan 2009 00:39:00 GMT I am closing on a house on Feb 2, 2009 and have yet to file my 2008 return. Is it possible to claim the purchase on the 08return in order to get the tax credit or will I have to wait till next year? Jeremycafe , 29 Jan 2009 23:52:14 GMT There is a problem with the way the TaxCut premium online software takes the information for the First Time Home Buyer credit.
It does not account for the following case, as described in Part II, line 1 of the instructions for Form 5405:
"If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount cannot exceed the smaller of $7500 or 10% of the purchase price."
In my case, I purchased a home in August 2008 for approx $450,000 with another single, unmarried individual, and we both live there as our main residence. As such, we both need to split the First Time Home Buyer credit evenly, $3750 each.
TaxCut doesn't give the user the option to indicate what percentage of the credit they are claiming (in my case, I'll be claiming 50% of the credit since I am own a 50% stake in the property).
I spoke with a supervisor from HR Block customer support yesterday and they said they did not have a solution for the problem right now other than for me to print out the form 5405 and fill them out manually and mail them in.
If I wanted to do that, I would not be using the TaxCut software. I would prefer that HR Block fix the online software to account for the case of unmarried individual who buy property together, as I'm sure it will affect many other TaxCut customers.
peteheat , 29 Jan 2009 16:42:21 GMT JNE - Unfortunately, you were given some bad advice. You cannot claim the credit until you actually purchase a home (if you meet the other qualifications). Once you do buy your home, you can include the credit on your 2008 return. If you've already filed your return, you an amend it to claim the credit.
You are correct that you can't complete the Form 5405 without a closing statement, which you'll receive when you close on the home.
On Part I, line B, you are required to enter the date the taxpayer actually acquired the home, not the date you expect to acquire it.
Part II, line 1, requires you to use the purchase price of the home to calculate the credit. "Purchase price" is defined in the instructions as:
The purchase price is the adjusted basis of your home on the date you purchased it. This includes certain settlement or closing costs (such as legal fees and recording fees) and your down payment and debt (such as a first or second mortgage or notes you gave the seller in payment for the home). If you build, or contract to build, a new home, your purchase price can include costs of construction.
Brenda Schafer, The Tax Institute @ H&R Block
MSA, CPA, CFP, EA
Brenda Schafer , 28 Jan 2009 16:31:29 GMT Zaraide -form 5405 (first time home buyers credit) was made available in our 01/23 release.
David James
H&R Block David James , 28 Jan 2009 04:23:05 GMT missedaisy ..
Hi, this is Denise at H&R Block.
It is a shame that your realtor or mortgage lender did not share this critical information with you prior to your closing.
I am so sorry; In know it hurts.
Denise Sposato, H&R Block Denise Sposato , 27 Jan 2009 18:28:06 GMT Re: the form 5405. I tried it again today, January 27th and it says the form is not ready. Any ideas? Thank you nascar19 , 27 Jan 2009 14:34:24 GMT My husband and I bought our first house March 31st. I can't believe we won't get this tax credit because we closed just a week early of April 8th. I hope our accountant can find a loop hole. missedaisy , 27 Jan 2009 02:24:07 GMT I am planning on buying a home in the next few months. I am told that I can go ahead and claim this credit in my 2008 filing, but the HR Block efile will not allow me to claim it without giving specifics for the purchase, well it hasn't happened yet. How do I claim the credit. Do I have to pay someone else to file my taxes now instead!? Or sort through all the long form paperwork on my own and risk error? This really is disappointing. JNE , 24 Jan 2009 18:42:37 GMT The form for the first time home buyers is now available on the H&R Block online filing. I just used it. Thanks. zaraide , 24 Jan 2009 00:22:01 GMT When will the H&R Block online tax preparation get the form for the first time buyers credit? When I tried to continue with my tax preparation it stated the form was not ready. I have printed a copy from the IRS site so why would H&R Block not have it yet?
Thanks. zaraide , 22 Jan 2009 23:53:22 GMT Does anyone know when the form 5405 is going to be available here at H&R Block for on-line filing? I've been waiting a week for this to show up.
Also, in part of the new proposed $825 billion stimulus package they propose to wave the repayment of this tax credit. Just thought everyone would like to know. jonp , 21 Jan 2009 14:22:40 GMT QUESTION?!????? My wife bought a home July 9th 2008 (her first home) under this credit should would qualify, but I owned a home up until 2007 so I do not qualify for the 3 year rule. I do not own the home we stay in techincally and we were not married until after she bought the home...if we file jointly, does anyone know if she will qualify? aarone32 , 20 Jan 2009 21:01:52 GMT A friend of mine told me over the weekend there is a 6% fee on top of what you owe if you sell your home before the 15 year period is up..does anyone know if this is true?? She works for H&R Block... toni , 19 Jan 2009 14:37:47 GMT I am mad!! I bought my first house in feb 08 and I cant take the loan I am mad!!! It should go for anyone who purchased a home in 2008!! The governmenet needs to look at this again and include all home purchases in 2008!! sitterlaurie , 16 Jan 2009 19:51:11 GMT As long as people are not stupid it should be fine. i am planning on using the tax credit, because it will help us buy some things for our new home, and then put the rest toward a retirement fund. The thing is, we usually get a refund, and I doubt $500 a year will really put someone in debt. If it is a person that spends all the money they have and don't save anything I can see it being an issue, but if you are one who saves, at the least you can actually make money! I am planning on moving in the next few years, and if I sell it for less of a profit than what I owe on the 'loan'...then I get to keep the extra. ben76708 , 15 Jan 2009 23:50:40 GMT so when will the form be available? buddhawake , 15 Jan 2009 20:03:45 GMT Where I can see people eventually cursing the year they took this "loan" is if their income were to decrease, and they didn't have enough withheld, or for some reason not have a refund that would equal the amount needed to repay. Or they were expecting a higher refund but b/c of the repayment be really mad at themself for making the loan. With our economy suffering so badly, the least thing a person needs to do is to become more indebted, and the least person I want to be indebted to,is the government who would likely charge interest in the case the tax payer had to pay. Nope, I won't encourage anyone to do this. Not in our small town. TP2009 , 15 Jan 2009 19:19:30 GMT Great info. Thanks! jennybee , 15 Jan 2009 02:13:09 GMT That would be great if we all could say we did not need the money at this time, but like most on here, it could not come at a better time. Saving a down payment for the first time has been hard enough, but knowing the goverment is lending us 7500 to get started in a new house and pay it off 500 a year interest free is better then what anyone else would ask for if you borrowed it from them. We do not need credit cards, but we all have two or three of them with outragious intrest paid back monthly not yearly. Great offer I think. gemrok , 15 Jan 2009 00:43:38 GMT This is Denise at H&R Block.
Reading the comments, it's clear that some of you think this credit is great, others do not. And, in all honesty, there are pros and cons connected with this credit.
I would suggest talking to a tax professional to determine if the first-time homebuyers' credit makes sense for you and personal your tax and financial situation.
Most importantly, remember that the credit does have to be paid back if you sell it before the 15-year repayment period is up, or it's foreclosed on, or converted to business or rental property.
Best, Denise
Denise Sposato , 14 Jan 2009 20:44:36 GMT So if i purchased my house in december 2007 i dont qualify for the first time home buyers credit? Michelle , 10 Jan 2009 02:41:12 GMT I apologize if this dupes, I commented earlier and I don't see it yet.
Anyone who turns this credit down is foolish.
Free Money? No Interest? 15 years to pay it back?
AND YOU DON'T WANT IT???
Look, I did a spreadsheet, based on a 3% savings account, bond, money market, or any other savings method.
In 15 years, you will have made $3500 on the free money they are loaning you. And around $3000 if you consider the repayment schedule of 6-2/3% per year starting in 2010.
So, everyone that said they don't want the money, is basically saying they don't want an extra $3500.
And they wonder why people have problems saving.
-AI AlienIntelligence , 9 Jan 2009 22:21:55 GMT If you turn down an interest free loan that you could in turn invest in an interest generating account, then you are retarded. It's FREE MONEY!
Tard. NotTardedLikeU , 9 Jan 2009 17:04:10 GMT First of all, Kimmie, this is not a tax - it is a credit (an interest free loan - what bank do you know that will give you a loan and not charge interest?). Take the credit, put the money in a CD so funds won't be spent on frivolous purchases, use the interest earned to pay the annual repayments and maybe your utilities. Sure, this does not seem fair to people who purchased their homes earlier, but there has to be a start date in our code. I agree with Me that the real estate agents/builders should have known and advised their clients. They might have gotten a few more sales. jomivi , 9 Jan 2009 14:10:18 GMT I TOTALLY AGREE WITH THE FIRST COMMENT THIS ISNT A FAIR TAX, LOOK AT HIM HE IS GETTING SCREWED, AND YES I DO QUALIFY FOR THIS TAX AND THE MAX BUT I BE DARNED IF I AM GOING TO CLAIM IT, IF I HAVE TO REPAY IT OVER A 15 YEAR TERM AND YES IT IS INTEREST FREE, I AM NOT TAKING IT BECAUSE I DONT THE NEED THE EXTRA MONEY RIGHT NOW, SO WHY TAKE IT IF YOU DONT NEED THE MONEY AND I MIGHT NEED IT OVER THE 15 YEARS WHEN THEY ARE TAKING IT OUT AND THAT WOULD BE 500 YEAR ON 7500, I MIGHT NEED THAT 500 FOR A UTILITY BILL THAT YEAR, SO WHAT I AM SAYING PEOPLE IS THAT U DO HAVE TO PAY IT BACK, SO IF U DONT NEED IT PLEASE DONT TAKE IT
kimmiecrawford , 9 Jan 2009 03:23:38 GMT Judy,
is it fair, no. But we knew this was coming the december before and we knew the dates. Don't blame the government, blame your agent/ builder. They should have been aware of this, after all they are in the business, and they should have held off on your closing, like many did (including ours), until after april. I'm not kidding, this was in the news and projected for april forward at least a quarter before it was enacted. Also, how would this have "stimulated" you to buy a house considering you bought a house anyway? Granted, this is an interest free loan for homebuyers, but really it's a round-about subsidy for home builders and real estate agents. They let you down because they weren't aware. Stop blaming the government. Me , 9 Jan 2009 02:57:43 GMT I AGREE WITH JUDYB, I DID THE SAME THING. AND CLOSED ON MY HOUSE IN FEB. 08. I AM SINGLE AND WORKED HARD TO SAVE TO GET A HOME. ALL FIRST TIME HOME BUYERS IN O8 SHOULD GET THE TAX CREDIT!!!!!!!!!!!!!!!!!!!! eviefly , 9 Jan 2009 02:47:29 GMT This is not at all fair to those of us single folks who worked our butts off to buy a house before April. I worked 1800 hrs overtime to buy my house, but don't qualify because I closed on my house in February. If the government wants to stimulate the economy, it should be fair to ALL first time buyers that bought houses in 2008 JudyB , 8 Jan 2009 23:13:11 GMT
|
Upload by: HRB Digits
28 Feb 2009 03:30:02 GMT
Tags: buyer,credit,home,tax
RELEVANT ARTICLES
 
SIGN UP NOW
Subscribe to our newsletter and receive information and fun facts on tax related issues from the tax professionals at H&R BlockEmail:(ex:jdoe@gmail.com) |
