The current 5405 form corresponds to the older $7,500 first-time home buyer tax credit that must be paid back. I'm referring to the new $8,000 tax credit that does not have to be paid back. This amendment was included in the stimulus bill signed by Obama today (2/17/09).
Matt A
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The HR block lady doesn't know what she's talking about. I would wait a couple more weeks for them to upgrade it. This new one is going to be applicable to the 2008 tax returns as seen in the Federal Housing Tax Credit website I cited.
Jess
In response to the senior tax advisor from HR Block:
"If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this. "
I know that this applied for the $7500 and my understanding is that it is applicable for the $8,000 credit as well.
I assume it will take a while for them to get the new form posted but if you call the IRS' helpline they are very helpful and they may just tell you how you can claim the new credit with the current form.
beatrice
The last I heard no. You need to send copies of settlement papers which e-file is not equipped to handle. I wish they had some way to upload scanned copies. But anyways, it can take more than the 6 weeks you expect as there were numerous frauds in this credit last year. Hard luck but the money is worth the wait. The sooner you file the better as you will beat the rush. If you are expecting a sizable refund even without 5405, you can e-file your regular taxes first, get the refund quickly, and then file an amendment 1040x with the 5405 later and get the homebuyer's credit later and slower.
Beth R
I checked on irs.gov today (2-21-09) and the revised form is available. Don't let these people who don't know what they are talking about tell you to wait until 2009. It is available to take the credit on your 2008 taxes even when you bought the house in 2009. It says it plainly in the bill that Obama signed that you can elect to take the credit in 2008, as if you had bought the home on 12-31-08.
Steve
I spoke with an IRS representative yesterday and she said that the new form was being created and would be available within the next couple of days. According to her, they were trying to decide between editing the current form or creating a new form. You will be able to get the tax credit this year. If you have already filed for the $7500 and you closed on your house after January 1, 2009 then you will not be responsible for paying it back, however, you will have to file an ammended return(1040x).