Filing for your $8,000 First Time Buyer Tax Credit

So, you've made your move and purchased your first home!

First, Congratulations!

Second, you'll want to go ahead and file for your First Time Home Buyer Tax Credit, but should you file and amended 2008 return or wait and file with your 2009 Federal Income Tax?
Whether you are filing on your 2008 return or your 2009 return, visit the IRS Web site and download Form 5405 (PDF 257KB) . This is a very short form and takes just moments to complete.

• On line 1, enter either $8,000 or 10 percent of the home purchase price, whichever is smaller. (in order for the credit to be less than $8,000, the purchase price would have to be $79,999 or less, so most people will qualify for the full $8,000 credit).
  
  
• On line 2, enter your adjusted gross income.
  
  You can find your gross adjusted income on line 37 of Form 1040 from your 2008 Tax return.
  

• If your adjusted gross income is greater than $75,000 (individual) or your joint income is more than $150,000, you'll have to complete some additional calculations to determine your credit amount.

• Everyone else (income under $75,000 individual or under $150,000 joint) you can just enter the tax credit amount on Line 6.

How easy is that???!

Don't forget, if you haven't yet purchased your first home, the tax credit is only available on homes purchased and CLOSED by 11/30/09.

If you are thinking of buying a home in the Austin or Highland Lakes areas, give us a call and we can send you a First Time Home Buyer Booklet to help you through the process. We'll be happy to help you find the perfect home and get it closed before the deadline. Call us today at 866-693-7741 for more information.

Using your $8,000 First Time Home Buyer Credit

So, you've decided to to buy your first home and now it's time to apply for your first time Home Buyer's Credit - What are the steps you need to take?

1. Close on your home purchase by November 30, 2009,
2. Make sure that you are a qualified first-time buyer under IRS guidelines,
3. Decide which year to file under, 2008 or 2009
   
4. File an amended 2008 return or choose to apply the credit to your 2009 tax return.

Collect your Tax Credit and Enjoy your new home!

If you live in Austin or the Highland Lakes area of Texas, give us a call or send us an email and we can help you find your first home.