Everybody talks about the home buyer tax credit that will expire at the end of April 2010.

So, you signed a contract on one  of the Columbus OH homes for sale in anticipation of this deadline. You also filed your annual tax return way ahead of April 15 (that’s just in 2 days from now). And, you even received your regular tax refund.

How can you claim your $8000 (or $6,500) tax credit for the purchase of your house? Do you have to wait another year?

Definitely, not! However, you will need to file an amended return.

Filing an amended return is not difficult. Most tax preparers will do it for a few hundred bucks. But you can also do it yourself, if you are comfortable filling out the IRS paperwork.

Here are 5 things the IRS wants you to do, when you file an amended tax return to claim your $8,000 (or $6,500) home buyer tax credit:

  1. Use form 1040X to prepare your amended tax return.
  2. You have to paper file your amended return, even if you initially filed electronically.
  3. Make sure to enter the correct tax year you want to amend – you can file up to 3 years later.
  4. If you claim an additional refund, as with the home buyer tax credit, you should wait until you received the initial refund, before you file the amended return.
  5. To claim the home buyer tax credit you need to use form 5405 and attach a copy of the HUD-1 closing statement as proof of purchase.

It may take 2 to 3 months until you receive the additional refund. It can be directly deposited to you bank account or you can request a check (which may be slower).

I am not a tax expert and I am not giving you legal or accounting advice! So ask your accountant, tax preparer or attorney for details on this subject. If you need help finding an accountant familiar with the home buyer tax credit, feel free to give me a call.

Thanks for reading the susannenovak.com Blog!
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Real Estate Agent helping First Time Buyers.
(614) 975-9650