First time home buyers who wish to claim tax credit are required to do so by filling in the IRS Form 5405.
Below is a look at the IRS Tax Form 5405, as well as the important details and instructions on tax credit that a first time buyer must follow.
The IRS Tax Form 5405 is available in PDF format on the IRS website - irs.
gov.
The instructions are included in this form and they inform the taxpayer about all they need to know about being eligible for tax credit, the credit amounts available, special situations which may trigger payments, as well as the various exceptions to qualifying for 5405 benefits.
Moreover, these instructions also identify those who are not eligible for tax credit.
When submitting Form 5405, you should attach it to your Form 1040 or any other applicable individual income tax return, and file it along with that return.
This is because the two forms are associated with one another seeing as the amount of tax credit claimed will flow to your tax return in order to offset any tax liability, or affect your tax refund.
Form 5405 is used to claim first time home buyer 5405 benefits for both the $7,500 and $8,000 credit amounts.
A revised version of the Form 5405 was recently posted by the IRS, which reflects changes in keeping with the American Recovery and Reinvestment Act of 2009 (commonly referred to as the 2009 economic stimulus plan) which was passed in February 2009.
Wealthy taxpayers do not qualify for first-time home buyer 5405 benefits.
This is because of the phase out which is calculated on lines 2 to 5 of Form 5405, and begins at $75,000 per individual, or $150,000 for a married couple filing jointly.
Moreover, the credit is completely phased out for individuals who earn more than $95,000 or $170,000 for joint filers.
Other exemptions under Form 5405 include:
Below is a look at the IRS Tax Form 5405, as well as the important details and instructions on tax credit that a first time buyer must follow.
The IRS Tax Form 5405 is available in PDF format on the IRS website - irs.
gov.
The instructions are included in this form and they inform the taxpayer about all they need to know about being eligible for tax credit, the credit amounts available, special situations which may trigger payments, as well as the various exceptions to qualifying for 5405 benefits.
Moreover, these instructions also identify those who are not eligible for tax credit.
When submitting Form 5405, you should attach it to your Form 1040 or any other applicable individual income tax return, and file it along with that return.
This is because the two forms are associated with one another seeing as the amount of tax credit claimed will flow to your tax return in order to offset any tax liability, or affect your tax refund.
Form 5405 is used to claim first time home buyer 5405 benefits for both the $7,500 and $8,000 credit amounts.
A revised version of the Form 5405 was recently posted by the IRS, which reflects changes in keeping with the American Recovery and Reinvestment Act of 2009 (commonly referred to as the 2009 economic stimulus plan) which was passed in February 2009.
Wealthy taxpayers do not qualify for first-time home buyer 5405 benefits.
This is because of the phase out which is calculated on lines 2 to 5 of Form 5405, and begins at $75,000 per individual, or $150,000 for a married couple filing jointly.
Moreover, the credit is completely phased out for individuals who earn more than $95,000 or $170,000 for joint filers.
Other exemptions under Form 5405 include:
- A person who is a non-resident living in the U.
S.
and does not meet the green card test or substantial presence test for the calendar year. - A purchased home located outside of the U.
S. - A home which was sold or ceased to be the taxpayer's primary residence before the end of 2008.
- A home inherited or gifted by someone else.
- A home purchased from a relative, such as a spouse, parent, grandparent, children or grandchildren.
Related parties also include corporations or partnerships in which an individual owns more than 50% of the stock or receives over 50% of the profits or interest.
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