Q: Our daughter purchased a home last month with her boyfriend, who we hope will soon be her husband. This transaction qualifies for the $8,000 first-time home buyer tax credit because it is the first home for both of them.
How does this work for the first-time home buyer tax credit? Does the credit go to one person (who would get the entire $8,000) or do they both have to apply for it and each would get $4,000?
Would they both have to file an amended tax statement to get the home buyer tax credit yet this year?
A: Since your daughter and her boyfriend aren’t married, they would each have to file separately for the tax credit. They could each amend their 2009 tax returns and then the credit will show up (up to $4,000 for each of them) in about 8 to 10 weeks.
Or, they can wait to file until next year. But why should they wait an entire year? Although it might cost a little extra, they might want to file an amendment now and get the cash this year.
They will need to file their tax return amendment on paper, which is required by the IRS for anyone claiming a home buyer tax credit. They will also need a copy of their HUD-1 form. That form is the official closing statement from the closing or settlement of the home they purchased. For more details and information on how to file for the home buyer tax credit, go to www.irs.gov or visit ThinkGlink.com.
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