Now that you’ve received all of your W-2s and 1099’s, home buyers who purchased a San Mateo home in 2009 are starting to think about their taxes so they can (hopefully) get some money back from the IRS with the home buyer tax credit. Several clients have asked how to claim the home buyer tax credit. Here are some tips.
No e-File Allowed
Because of all of the fraud surrounding the credit, the IRS is not allowing tax payers claiming the home buyer tax credit to e-file because of the additional documentation required.
Additional Documentation Required
Along with your regular tax forms, you must attach Form 5405 with a copy of the HUD-1 Settlement Statement. (You received this from the Title Company when you signed the loan documents at closing.)
Trade Up Home Buyer? More Documentation Required
Remember, to claim the $6,500 trade up home buyer tax credit, home owners must have lived in their primary residences for at least 5 consecutive of the past 8 years and be purchasing a new primary residence.
To prove you’ve been in your home for 5 consecutive years, you will need to provide one of the following covering 5 consecutive years in the last 8 years in addition to Form 5405 and your HUD-1 Settlement Statement:
- Form 1098, Mortgage Interest Statement or substitute
- Property tax records
- Homeowner’s insurance records
Need More Information About Filing the Tax Credit?
Remember, I am a San Mateo Mortgage Advisor helping San Mateo home buyers with their mortgage needs, NOT an income tax specialist. So, for more questions contact your Tax Advisor or visit the IRS webpage.
If you need a recommendation for a tax advisor, send me an email at info@SanMateoMortgageBlog.com and I can recommend someone to you.
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