File Amended Tax Return To Get Tax Credit Early
IRS Home Buyer Tax credit filing options – a forgotten player in buying your first home in 2009.
One of the big news items in May of 2009 has been the pseudo announcement by HUD Secretary Shaun Donovan of an upcoming tax credit bridge loan to be offered through FHA approved lenders as well as other approved entities. This bridge loan will allow qualifying first time home buyers to capitalize on their home purchase tax credit authorized by the Obama Housing Recovery and Stimulus Plan of 2009. Learn more about the Tax Credit Bridge Loan.
Even with the option of the tax credit short term bridge loan forthcoming for first time home buyers, some home buyers may find that they want some other options for how to claim their tax credit ahead of time. As it stands, the “normal” way to get the home purchase tax credit is to file for it with the 2009 tax return in 2010. This is a long time to wait. However, the IRS has published several filing options for those home buying tax payers who want to get their tax credit earlier.
The following filing option suggestions can be found on the IRS.gov website:
Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
Tax Credit Filing Options
- File An Extension – Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
- File Now Amend Later – Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
- Amend the 2008 Tax Return – Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the home buyer tax credit on the 2008 return without waiting until next year to claim it on the 2009 return.
- Claim the credit in 2009 rather than 2008 – For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.
The best advice we can give is call you tax preparer and ask them your options for qualifying for the tax credit if buying your first home in 2009 and what are your best tax credit filing options. Good luck.
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