This year, most closings are first-time buyers. They are eager to get the $8000.00 tax credit for first-timers. This is a pretty simple process.
To get the $8000.00 tax credit you can either amend your 2008 tax return or wait to file your 2009 tax return. Since most first-buyers were picked clean of available cash at closing, they amend their 2008 tax return to get the refund right away.
To amend your 2008 tax return, you will need:
1. A copy of your 2008 tax return;
2. Form 1040x, which is the amendment form;
3. Form 5405, the form that indicates that you are a first-time buyer who has joined the land-owning gentry.
If you type “1040x” or “form 5405” into google the forms pop right up. In the attached, I show how to fill out the form. This assumes that the client is single and the adjusted gross income is under $75,000.00.
The refund takes about 6 to 8 weeks to process.