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IRS Tips About The Extended First-Time Homebuyer Credit

Chesterfield, MO - Whenever you get a notice from the Internal Revenue Service (IRS), most people tend to pay very close attention. For first-time and repeat homebuyers, what the IRS has to say about the Extended First-Time Homebuyer Credit could mean money in their pockets and make the process easier for claiming the tax credit.

Our local St. Louis regional IRS Stakeholder Liaison, Nancy S. Outlaw, in Chesterfield, Missouri has distributed helpful information to aid new and repeat homebuyers. According to Lawson, the IRS wants you to "feel free to use these tips" in obtaining the extended homebuyer credit included in the recently passed legislation titled Worker, Homeownership and Business Assistance Act of 2009.

Here are the top 10 facts the IRS wants you to know about the expanded credit and the qualifications homebuyers must meet.

  1. You must buy - or enter into a binding contract to buy a principal residence - on or before April 30, 2010.
  2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
  3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
  4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you've lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
  5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
  6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
  7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 - whether the credit is claimed for 2008 or for 2009 - and for all home purchases that are claimed on 2009 returns.
  8. No credit is available if the purchase price of the home exceeds $800,000.
  9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
  10. A dependent is not eligible to claim the credit.

The IRS has joined the YouTube generation. If you like your tax credit information delivered via online video, check out the IRS tips in a one minute video on YouTube. And if you want the thrill of seeing the letters "IRS" showing up in your email mailbox periodically, sign up for a free IRS Tax Tips Newsletter here. This service is provided to you at no charge by the Internal Revenue Service (IRS).

Posted by Customer Service on December 17th, 2009 9:35 AMPost a Comment (0)
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