Tax credit now or next year?
March 17, 2010 10:56 AM   Subscribe

We are purchasing a home, which should close by the end of the month. We have also finished our taxes for the year. We will qualify for the $8000 first time home buyer tax credit. Is it possible to amend our taxes and get the credit for the 2009 tax year, even though we completed the purchase in 2010?

Everyone involved in the process is alluding to this being the case, as there was an official federal extension; but I can't find any hard evidence online that this is possible. My concern is that we would have to wait until next year for the credit, due to it being completed in 2010. Evidence of an officially stated policy would help alleviate my concerns. Thanks.
posted by SpacemanStix to Home & Garden (5 answers total)
The IRS is the best place to go for the hard evidence.
posted by iknowizbirfmark at 11:04 AM on March 17, 2010

The answer appears to be "yes but it will take a long time to process:"
Q. Can I e-file my return without the first-time homebuyer credit and then amend my return later to claim the first-time homebuyer credit and mail in the supporting documents?

A. While it is possible for you to e-file an original 2009 Form 1040 return without claiming the credit and then later amend your return to claim the homebuyer credit, you may have to wait longer to get a refund, based on the credit.

Before you decide to use that approach, consider that amended returns cannot be filed electronically. Routine processing of amended returns generally takes 8 to 12 weeks. Recently, however, because of higher than normal amended return volumes, it is now taking 12 to 16 weeks to process these returns. If you file a complete and accurate original paper 2009 tax return in January or early February, your refund, including the homebuyer credit, should be issued toward the end of March. This may be sooner, and possibly much sooner, than if you e-file early and then subsequently amend your 2009 return to claim the homebuyer credit.
posted by jedicus at 11:14 AM on March 17, 2010

Yes. You need to fill out 1040X and all supporting documents, on paper, and mail them to the IRS. I've done it before when I received tuition documents from my school after having filed my original tax return, and it does take a while to process. It's a wonderful surprise deposit in your checking account, however, when you've forgoten all about it and are least expecting it.
posted by halogen at 11:46 AM on March 17, 2010

We did this last year (purchased in 2009, amended 2008 taxes to get the credit) with our accountant. Once everything was mailed in, it took probably 3-4 weeks until we had our check.
posted by rinosaur at 12:26 PM on March 17, 2010

Excellent. Thanks everyone.
posted by SpacemanStix at 3:17 PM on March 17, 2010

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