With the tax credit creating more interest from first time home buyers, I have been getting questions about how to get this credit to you. I thought I might forward the following information I found in my research off the IRS webpage from the IRS which I hope will be helpful to you. You can "amend" your taxes right after closing and back date the credit to Dec 31^st on their 2008 returns. It's rather simple but since it's the IRS and they talk their own language, we'll do it in everyday English. The full details follow:

The full $8,000 tax credit is available to home buyers who have not owned a home for the past three years and who buy the home as their primary residence between Jan. 1, 2009, and Dec. 1, 2009, and whose modified adjusted gross income is less than $170,000 if filing jointly or $95,000 if filing as a single person. If the home value is less than $80,000, the tax credit is reduced, and if the income you earn is higher than the amounts listed, the credit is phased out.

 If I claim the first-time homebuyer credit for a purchase in 2009 and stop using the property as my principal residence before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it?

*If you move within 36 months of the date of purchase (3 full years) or the property changes from being your principal residence, you are required to repay the credit.  Repayment of the full amount of the credit is due at that time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit. This plan is NOT for property flippers!

It means anyone can make changes or adjustments on a return already filed by filing an amended return. It's for most people making under $80,000 who hasn't boughtone in the last three years. OK, what then?

Here's the top 10 things everyone should know about amending your federal tax return:

1. Taxpayers needing to amend their return use Form 1040X, Amended U.S. Individual Income Tax Return.

2. Taxpayers can use Form 1040X to correct previously filed Forms 1040, 1040A or 1040EZ. The 1040X can also be used to correct a return filed electronically.

3. Taxpayers should file an amended return if they discover any of the following items were reported incorrectly: filing status, dependents, total income, deductions or credits.

4. Generally, you do not need to file an amended return for math errors as the IRS will be able to make the correction for you.

5. You also do not usually need to file an amended return because you forgot to include forms - such as W-2s or schedules - when you filed; the IRS normally requests those forms from you.

6.  Be sure to enter the year of the return you are amending at the top of Form 1040X. Generally, you must file Form 1040X within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later.

7. If you are amending more than one tax return, prepare a 1040X for each return and mail them in separate envelopes to the IRS processing center for the area in which you live. The 1040X instructions list the addresses for the centers.

8. If the changes involve another schedule or form, attach it to the 1040X.

9. If you are filing to claim an additional refund, wait until you have received your original refund before filing Form 1040X. You may cash that check while waiting for any additional refund.

10. If you owe additional tax for 2008, you should file Form 1040X and pay the tax as soon as possible to limit interest and penalty charges. Interest is charged on any tax not paid by the due date of the original return, without regard to extensions.

We hope these changes to the IRS code is something you're qualified for.  We can help you on all your home's questions and concerns. We WANT you to get the MOST out of your home purchase!

We're not tax advisors and you should talk to one earlier than later;

you may have special cicrumstances you should be aware of. 

See these facts, and more at the official IRS Website at http://www.irs.gov/newsroom/article/0,,id=108657,00.html

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