Claim Your Home Buyer Tax Credit with IRS Form 5405
On January 15th the IRS released a new form for home buyers who want to claim the tax credit when they file their taxes this year. This is Form 5405. Form 5405 is a revision of the previous 2009 First Time Home Buyer Tax Credit. This is so that the current 2010 Home Buyer Tax Credit program is covered.
I would like to point out 2 important changes:
- You MUST include documentation such as your RESPA closing statement along with Form 5405.
- You must file manually.
Because there is more documentation required your tax return must be filed manually. This applies to both a repeat and a first time home buyer who are claiming the tax credit. Remember that both more documentation and manual filing is what you’ll have to do.
For more information, just go to the IRS website . It’s really not hard to take care of this and since you will have purchased your home recently, it shouldn’t be difficult to access your RESPA closing statement. As always, I recommend that you consult with a tax professional.
The home buyer tax credit is a benefit of home ownership. Make sure you do what’s required so you get this advantage.