| If you are currently looking to buy your first home or | | | | purchase at some future point in time. The credit can |
| the first one in three years, you have likely heard of | | | | only be claimed for completed purchases and you will |
| the federal government's first time home buyer credit | | | | need to submit a copy of your HUD-1 settlement form |
| which can award you with 10% percent (up to $8,000) | | | | as proof of the completed transaction. |
| of the purchase price of your home. If you meet the | | | | You essentially claim the credit on your federal income |
| regulatory definition of a first time home buyer, fall | | | | tax return. You first need to complete IRS Form |
| within the specified income limits, and are not otherwise | | | | 5405 to determine the amount of your credit. Next, |
| disqualified from receiving the credit you are likely | | | | attach a copy of your HUD-1 settlement form to Form |
| wondering how to go about claiming it. This is what I | | | | 5405. Then, enter your eligible credit amount on line |
| will describe in this article. | | | | 67 of the 1040 income tax form for 2009 returns or |
| Claiming the credit is a relatively straightforward | | | | line 69 for 2008 returns. Lastly, package all your |
| process but it is important to follow all the steps | | | | documents, mail it in, and you are done! No other |
| carefully to avoid making silly mistakes and filing for it in | | | | special forms or pre-approval is necessary. If you |
| a timely fashion. The first thing you should bear in | | | | qualify for a refund, the only thing left to do is to sit |
| mind is that you cannot claim the credit for an intended | | | | back and wait for your check to arrive. |