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First-Time Homebuyers Have Several Options to Maximize New Tax Credit
IR-2009-27, March 18, 2009
WASHINGTON — As part of the Treasury Department’s consumer outreach
effort and with the April 15 individual tax filing deadline approaching, the
Internal Revenue Service today began a concerted effort to educate taxpayers
about additional options at their disposal to claim the new $8,000 first-time
homebuyer credit for 2009 home purchases. For people who recently
purchased a home or are considering buying in the next few months, there
are several different ways that they can get this tax credit even if they’ve
already filed their tax return.
The Treasury Department encourages taxpayers to explore these options to
maximize their credit and get their money back as fast as possible.
“The new credit can get money in the pockets of first-time homebuyers
quickly,” said IRS Commissioner Doug Shulman. “For people who recently
purchased a home or are considering buying in the next few months, there
are several different ways that they can get this tax credit even if they’ve
already filed their tax return.”
First-time homebuyers represent a significant portion of existing single-family
home sales. The expansion in the first-time homebuyer credit will make it
easier for first-time homebuyers to enter the housing market this year.
Under the American Recovery and Reinvestment Act of 2009, qualifying
taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000
for married individuals filing separately. People can claim the credit either on
their 2008 tax returns due April 15 or on their 2009 tax returns next year.
The filing options to consider are:
File an extension. Taxpayers who haven’t yet filed their 2008 returns but are
buying a home soon can request a six-month extension to October 15. This
step would be faster than waiting until next year to claim it on the 2009 tax
return. Even with an extension, taxpayers could still file electronically,
receiving their refund in as few as 10 days with direct deposit.
File now, amend later. Taxpayers due a sizable refund for their 2008 tax return
but who also are considering buying a house in the next few months can file
their return now and claim the credit later. Taxpayers would file their 2008 tax
forms as usual, then follow up with an amended return later this year to claim
the homebuyer credit.
Amend the 2008 tax return. Taxpayers buying a home in the near future who
have already filed their 2008 tax return can consider filing an amended tax
return. The amended tax return will allow them to claim the homebuyer credit
on the 2008 return without waiting until next year to claim it on the 2009 return.
Claim the credit in 2009 rather than 2008. For some taxpayers, it may make
more financial sense to wait and claim the homebuyer credit next year when
they file the 2009 tax return rather than claiming it now on the 2008 tax return.
This could benefit taxpayers who might qualify for a higher credit on the 2009
tax return. This could include people who have less income in 2009 than 2008
because of factors such as a job loss or drop in investment income.
The IRS reminds taxpayers the amount of the credit begins to phase out for
taxpayers whose modified adjusted gross income is more than $75,000, or
$150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price
up to $8,000, or $4,000 for married individuals filing separately.
IRS.gov provides more information, including guidance for people who bought
their first homes in 2008. To learn more about the overall implementation of
the Recovery Act, visit www.Recovery.gov.
-------------------------------------------------------------------------------------------------------------------
IRS Has $1.3 Billion for People Who Have Not Filed a 2005 Tax Return
IR-2009-16, March 3, 2009
WASHINGTON — Unclaimed refunds totaling approximately $1.3 billion are
awaiting over a million people who did not file a federal income tax return for
2005, the Internal Revenue Service announced today. However, to collect the
money, a return for 2005 must be filed with the IRS no later than Wednesday,
April 15, 2009.
Especially in these tough economic times, people should not lose out on
money that is rightfully theirs," said IRS Commissioner Doug Shulman.
“People should check their records, especially if they had taxes withheld from
their paychecks but were not required to file a tax return. They may be
leaving money on the table, including valuable tax credits that can mean even
more money in their pockets."
The IRS estimates that half of those who could claim refunds for tax year 2005
would receive more than $581. Some individuals may not have filed because
they had too little income to require filing a tax return even though they had
taxes withheld from their wages or made quarterly estimated payments. In
cases where a return was not filed, the law provides most taxpayers with a
three-year window of opportunity for claiming a refund. If no return is filed to
claim the refund within three years, the money becomes property of the U.S.
Treasury. For 2005 returns, the window closes on April 15, 2009. The law
requires that the return be properly addressed, postmarked and mailed by that
date. There is no penalty assessed by the IRS for filing a late return qualifying
for a refund.
The IRS reminds taxpayers seeking a 2005 refund that their checks will be
held if they have not filed tax returns for 2006 or 2007. In addition, the refund
will be applied to any amounts still owed to the IRS and may be used to satisfy
unpaid child support or past due federal debts such as student loans.
By failing to file a return, individuals stand to lose more than refunds of taxes
withheld or paid during 2005. Many low-income workers may not have claimed
the Earned Income Tax Credit (EITC). Generally, unmarried individuals
qualified for the EITC if in 2005 they earned less than $35,263 and had more
than one qualifying child living with them, earned less than $31,030 with one
qualifying child, or earned less than $11,750 and had no qualifying child. Limits
are slightly higher for married individuals filing jointly.
Current and prior year tax forms and instructions are available on the Forms
and Publications web page of IRS.gov or by calling 1-800-TAX-FORM (1-800-
829-3676). Information about the Earned Income Tax Credit and how to claim it
is also available on IRS.gov. Taxpayers who need help also can call the toll-
free IRS help line at 1-800-829-1040.
-------------------------------------------------------------------------------------------------------------------
IR-2009-27, March 18, 2009
WASHINGTON — As part of the Treasury Department’s consumer outreach
effort and with the April 15 individual tax filing deadline approaching, the
Internal Revenue Service today began a concerted effort to educate taxpayers
about additional options at their disposal to claim the new $8,000 first-time
homebuyer credit for 2009 home purchases. For people who recently
purchased a home or are considering buying in the next few months, there
are several different ways that they can get this tax credit even if they’ve
already filed their tax return.
The Treasury Department encourages taxpayers to explore these options to
maximize their credit and get their money back as fast as possible.
“The new credit can get money in the pockets of first-time homebuyers
quickly,” said IRS Commissioner Doug Shulman. “For people who recently
purchased a home or are considering buying in the next few months, there
are several different ways that they can get this tax credit even if they’ve
already filed their tax return.”
First-time homebuyers represent a significant portion of existing single-family
home sales. The expansion in the first-time homebuyer credit will make it
easier for first-time homebuyers to enter the housing market this year.
Under the American Recovery and Reinvestment Act of 2009, qualifying
taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000
for married individuals filing separately. People can claim the credit either on
their 2008 tax returns due April 15 or on their 2009 tax returns next year.
The filing options to consider are:
File an extension. Taxpayers who haven’t yet filed their 2008 returns but are
buying a home soon can request a six-month extension to October 15. This
step would be faster than waiting until next year to claim it on the 2009 tax
return. Even with an extension, taxpayers could still file electronically,
receiving their refund in as few as 10 days with direct deposit.
File now, amend later. Taxpayers due a sizable refund for their 2008 tax return
but who also are considering buying a house in the next few months can file
their return now and claim the credit later. Taxpayers would file their 2008 tax
forms as usual, then follow up with an amended return later this year to claim
the homebuyer credit.
Amend the 2008 tax return. Taxpayers buying a home in the near future who
have already filed their 2008 tax return can consider filing an amended tax
return. The amended tax return will allow them to claim the homebuyer credit
on the 2008 return without waiting until next year to claim it on the 2009 return.
Claim the credit in 2009 rather than 2008. For some taxpayers, it may make
more financial sense to wait and claim the homebuyer credit next year when
they file the 2009 tax return rather than claiming it now on the 2008 tax return.
This could benefit taxpayers who might qualify for a higher credit on the 2009
tax return. This could include people who have less income in 2009 than 2008
because of factors such as a job loss or drop in investment income.
The IRS reminds taxpayers the amount of the credit begins to phase out for
taxpayers whose modified adjusted gross income is more than $75,000, or
$150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price
up to $8,000, or $4,000 for married individuals filing separately.
IRS.gov provides more information, including guidance for people who bought
their first homes in 2008. To learn more about the overall implementation of
the Recovery Act, visit www.Recovery.gov.
-------------------------------------------------------------------------------------------------------------------
IRS Has $1.3 Billion for People Who Have Not Filed a 2005 Tax Return
IR-2009-16, March 3, 2009
WASHINGTON — Unclaimed refunds totaling approximately $1.3 billion are
awaiting over a million people who did not file a federal income tax return for
2005, the Internal Revenue Service announced today. However, to collect the
money, a return for 2005 must be filed with the IRS no later than Wednesday,
April 15, 2009.
Especially in these tough economic times, people should not lose out on
money that is rightfully theirs," said IRS Commissioner Doug Shulman.
“People should check their records, especially if they had taxes withheld from
their paychecks but were not required to file a tax return. They may be
leaving money on the table, including valuable tax credits that can mean even
more money in their pockets."
The IRS estimates that half of those who could claim refunds for tax year 2005
would receive more than $581. Some individuals may not have filed because
they had too little income to require filing a tax return even though they had
taxes withheld from their wages or made quarterly estimated payments. In
cases where a return was not filed, the law provides most taxpayers with a
three-year window of opportunity for claiming a refund. If no return is filed to
claim the refund within three years, the money becomes property of the U.S.
Treasury. For 2005 returns, the window closes on April 15, 2009. The law
requires that the return be properly addressed, postmarked and mailed by that
date. There is no penalty assessed by the IRS for filing a late return qualifying
for a refund.
The IRS reminds taxpayers seeking a 2005 refund that their checks will be
held if they have not filed tax returns for 2006 or 2007. In addition, the refund
will be applied to any amounts still owed to the IRS and may be used to satisfy
unpaid child support or past due federal debts such as student loans.
By failing to file a return, individuals stand to lose more than refunds of taxes
withheld or paid during 2005. Many low-income workers may not have claimed
the Earned Income Tax Credit (EITC). Generally, unmarried individuals
qualified for the EITC if in 2005 they earned less than $35,263 and had more
than one qualifying child living with them, earned less than $31,030 with one
qualifying child, or earned less than $11,750 and had no qualifying child. Limits
are slightly higher for married individuals filing jointly.
Current and prior year tax forms and instructions are available on the Forms
and Publications web page of IRS.gov or by calling 1-800-TAX-FORM (1-800-
829-3676). Information about the Earned Income Tax Credit and how to claim it
is also available on IRS.gov. Taxpayers who need help also can call the toll-
free IRS help line at 1-800-829-1040.
-------------------------------------------------------------------------------------------------------------------
