Blog, Home Buyer Tips
Getting Your Home Buyer Rebate Check in 2010
May 3, 2010 by Doug Francis · 4 Comments
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Let me first disclose that I am not a tax professional and this should not be considered tax advice.
Glad that’s over!
When a home buyer client of mine e-mailed me recently with confusion about how to claim the home buyer credit in 2010 from the IRS, I knew that he probably wasn’t the only one out there. He was really bummed out to read an old memo from the IRS on the first page on Google that gave the impression he would have to wait until he filed his 2010 taxes to get his rebate check… but know, recent home buyers, that just isn’t the only option. The new memo was released in January.
The home buyer tax credit was intended to be an economic stimulus… not a delayed stimulus plan.
You have two options to claim the tax credit for home buyers:
- File an Amended 2009 Form 1040x along with IRS Form 5405 and proper documentation including a copy of your HUD-1 Settlement Statement.
- Or you can wait until you file your 2010 taxes next year.
Like I discussed in a post in January, I felt that the home buyer tax credit or rebate program was going to be another super motivator for home buyers who were on the fence. As a Northern Virginia real estate agent, I did see it push some sales forward by a month or two, as those long-time owners living in Vienna VA put their homes on the market ahead of their projected time frame to capture the excitement.
Basically, first timers could get 10% of the sales price or up to $8,000 maximum. And current owners had the option to buy a home to qualify for the long term home buyer tax credit, up to $6,500.
But now that the deadline of April 30, 2010 has passed, there are plenty of people wondering how do I get that money to fix up the kitchen or replace the carpets? Maybe to amended your 2009 using Form 1040x to claim your first time home buyer tax credit is the route for you… consult a tax professional for advice if you have questions.
By the way, how long is it taking people to get those checks?
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Pending sales in Southern Maryland are at triple their level from back in February, so we saw a HUGE push by people to get the credit. I’ve seen clients get their checks in as little as 10 weeks, but I suspect that number has gone out the window with the fraud cases that have been happening lately.
Jonathan Benya´s last blog ..Tax Credit Bluster: Charles County Home Buyers Came Out In Force
It seems many first time home buyers are unaware that they are able to refile this year to claim the tax credit. Thanks for spelling it out on how exactly it works with the refiling with the amended 1040x. The IRS hasn’t been real clear about what else they’ll need to prove the home was under contract on April 30, as I mentioned in my blog on the same topic. Sending a copy of the signed purchase agreement will probably be a wise move to start with.
Denise Hamlin´s last blog ..New Movies in Iowa City & Coralville May 7
Well, I’m happy to say that we just received our first-time home buyer tax-credit! (Thanks, Obama…) The whole process was pretty effortless. Just had to file an amendment to our 2009 taxes. IRS told us it would take 12-13 weeks for us for our name to show up in the system, but considering we filed in mid-May and just received it before that time frame, I’m pretty pleased. Thanks for the help Doug! You rock.
Good post..