New form, no e-file, and longer wait

first-time-homebuyer-tax-creditIf you purchased a home after November 6th, 2009 or are planning on purchasing a home this year and taking advantage of first time home buyers tax credit, there are a couple of changes you need to know. 

New Form  – form 5405 is the form you need to claim the first time home buyers tax credit.  But if you purchased your Spring Texas home after November 6th, 2009,  not just any form 5405 will do.  You need to use the revised form 5405.  You can download the revised form 5405 and its instructions.  

No e-file– that’s right only snail mail will do. Due to six year old children claiming the first time home buyer tax credit, the IRS is requiring buyers to provide a copy of their HUD-1 settlement statement as proof that a house was actually purchased.  Smart idea on our government’s part to require documentation.  But not as convenient for you to claim the home buyers tax credit.

Longer wait– Due to the snail mail requirement and the IRS not being ready to process any first time home buyers tax credits until mid-February, your check will be showing up in your mailbox a couple of weeks later.  The IRS typically processes refunds in 4 to 8 weeks but early filers should expect the processing time to be 7 to 11 weeks.  

Read also: