- If you purchased a home during 2009, you could claim your credit on your fiscal year 2008 or 2009 taxes by filling out Form 5405, according to the IRS. The credit was available for purchases in 2010 until April 30 on your 2010 taxes. Assuming you have a home purchase that qualifies for the credit, the IRS will reduce your tax bill by the amount of the credit or send you a rebate for any amount left over.
- In 2010, Congress extended the First-Time Homebuyer credit to September 30, but homeowners had to enter into a legally binding contract to purchase the home by April 30. The extension merely allowed the homeowner extra time to finalize the deal and did not allow a person to start negotiations on a new home sale. Special rules apply to members of the military. Military personnel serving outside of the U.S. could receive the credit by entering an agreement to purchase the home until April 30, 2011 and finalize the deal by September 30, 2011.
- The IRS allows taxpayers to claim a tax credit after they filed their return by filing a 1040X or amended return. You generally have the latter of three years to file an amended return or two years after you pay your taxes. If, for instance, you file your taxes April 15, 2008, you would have had to file a 1040X by April 15, 2011.
- You will have to repay the homebuyer credit if you sell the property for which you claim the credit or it no longer becomes your primary residence within three years of receiving the credit. When you claim the homebuyer credit, include Form HUD-1 or any other document that shows your name, address and prove of the transfer of the property. You could also claim this credit if you owned your first home for five years prior to filing, but you must include mortgage interest statements with your 5405.
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