7500 First time homebuyer tax credit?

Question

How do I claim by credit? Where is it on my tax form?

Answer 1

In addition to what most of the other responders have said remember that this is not "Free Money." Yes you can get up to a $7500 credit but it has to be PAID BACK! Starting 2 years from the year you get the credit your tax liability will be increased by an amount equal to 1/15 of the credit you received and will be added to your tax liability for 14 years after that. If you qualify for $7500 that means that $500 will be added to your tax liability each year.

Answer 2

You will need to fill out form 5405 and carry the figure to lin 69 of the 1040.

Christine

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.
http://hrblock.com/taxes/tax_calculators…

Answer 3

http://www.federalhousingtaxcredit.com

IRS Form 5405

Answer 4

on form 5405