Working On My Taxes

I’ve just spent the last couple of hours working on my taxes.  Because my wife and I recently made our first new home purchase, we will be receiving the first-time homebuyer tax credit.  Instead of e-filing our return as we have for the past several years, the credit necessitates that we print out and mail in this years return.  From the IRS First-Time Homebuyer Credit website –

Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (see the instructions for help with the form), and a properly executed copy of a settlement statement used to complete the purchase…

Obviously, this means that our refund will take a bit longer to process than it has in the past – but the extra money is worth the wait!  Once we receive our refund (most of which will simply be the credit), we’ll deposit it into our savings account.  A portion will remain in savings, in cash-reserves.  Another portion will used to pay-down our mortgage principal, and a smaller portion will go towards some new furniture for our house.

I should be finished with my taxes by this evening – and I’ll print them out and mail them off in the morning.  I always make a couple of copies of the returns, to keep on file and in a safe location.  I’ll let you know how long the process takes and when the refund check arrives.

6 thoughts on “Working On My Taxes

  1. I’ve been told that they are taking 9 months to process the first time home buyers credit, and that you should file your return and the credit papers separately because of how back logged the system is. I just filed, and I did them separately. Already received my other credits, but plan to be waiting for quite some time for the homebuyer portion.

  2. As the first poster has said, the First Time Homebuyer Credit is taking longer to process. I currently have no information on how long it is taking. I do have a friend who works as an auditor for the IRS and his center is placing priority on ammendments over the homebuyers credit. This would mean that the IRS won’t even look at a return with the credit untill long after April 15. They generally don’t look at ammendments until after the close of the filing season.

    The recommended solution for most people is to e-file the 2009 return without the credit and then mail in an amended return with the credit included. This will delay the credit a little longer than filing all together, but will speed up the rest of the refund.

    Every return I have filed that claims the homebuyers credit has been filed using the file and ammend procedure and I have no data to support the timing of the homebuyers credit other than the hearsay from my friend.

    Disclaimer: I am employed with H&R Block.

  3. It will take from 6 to 8 week to receive your refund. The paper work for the First time home buyer credit is taking long time.
    The IRS just started reviewing the 5405 form at the begining of March.
    If you are just filing now it’s going to the bottom of the pile. Don’t make plans jet on spending that money.

  4. Believe me, that better live without any credit, If U can’t to buy flat U can build house gives to you enought info for this process.

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