$7500 First time Home Buyer Tax Credit IRS Form 5405

Submitted by Godmode on Thu, 01/29/2009 - 16:49.
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Woot! It finally here Obama's Stimulus Package brings a new hope for the ailing Real Estate Market in USA. Under the stimuls plan, a whopping $7500 First Time Home Buyer Tax Credits will be given for 2008-2009 Tax Breaks.

Who qualif for $7500 First Time Home Buyer Tax Credits?

$7,500 credit for first-time home buyers or others who haven’t owned a place in at least three years. House or condos purchased between April 8, 2008, and July 1, 2009 qualify. The tax credit is worth 10% of the purchase price of the home, with a maximum credit of $7,500. The credit is limited to $3,750 for married couples filing separate returns. The credit is also limited to the same $7,500 maximum for unmarried persons who purchase a residence together.

The credit is phased out for individuals with modified adjusted gross income between $75,000 and $95,000. For married couples filing a joint return, the phase out range is $150,000 to $170,000.

Please note there is a catch in this tax credit act. Like any other federal tax break, the home-buyer credit requires you to pay the government back the money over 15 years. $7,500 is more like an interest-free government loan than a true federal tax credit.

It's esdimated that this first time home buyers tax credit might boost the real estate industry and make anything like 200K house sales in 2009. 

You will be able to claim the credit on their 2008 tax return for homes purchased in 2008.

If you like to claim First time home buyer tax credits, do remember to download new Form 5405 for home buyers interested in claiming the tax benefits. IRS Form 5405 should be filed with your 2008 or 2009 federal tax return.

If you are lookin to efile your taxes this year, You can get TurboTax Premium for FREE

Quick Tip: 
Download IRS Form 5405 for First time Home Buyer Tax Credit Claim
  • 3 reads
Monster Dong
Submitted by Anonymous on Fri, 08/14/2009 - 22:56.
Hey B.S. i think if you call the IRS and tell there person that answers the phone that if they take 100 bucks to get your tax credit
Tax credit only available for 1/2 ?
Submitted by Anonymous on Thu, 08/13/2009 - 16:57.
My husband and I just purchased a home. He is the only one on the loan. Because he was the only one on the loan, i was not on the deed at signing. Due to this, My accountant is telling me that My husband can only qualify for $4,000 of the tax credit. Our home purchase was $130k. The reasoning he states is that we both have to be on teh deed to get the $8,000. Yet, my friend who is single jsut purchased a home, and she received teh full 8k credit. How does this work? Doesnt seem very fair to me, and perhaps (hopefully) my accountant is mistaken?? Can anyone provide some insight to this.
hello
Submitted by Anonymous on Thu, 07/30/2009 - 02:32.
my husband and i would like to buy my father in laws house, this will be our house that we have ever bought, will we be able to get the first- time home buyer credit?
B.S.
Submitted by Anonymous on Thu, 02/19/2009 - 05:04.
This is alot of B.S. because the date stipulation. I bought my first place last year in March and because of that I cann't be eligible for the First Time Home Buyer's Tax Credit. That Is alot of B.S. Why am I not eligible, can some answer me that question?

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