2008 stimulus ... 2009 home purchase

Posted by c on August 27, 2009, 4:17 pm

Please log in for more thread options

hi, two questions --

never received a 2008 stimulus ... have amended my 2008 return for
other purposes already ... a new amended return will take about 3
months to process ... do i have any option but to amend 2008 yet again
and claim the $600 credit (which the IRS website has told me i qualify
for already)?

just purchased my first home (2 weeks ago) ... do i wait for 2009 to
end and file my 2009 return in 2010, or can i amend 2008? the IRS
website says to file 5404, which has a "2008" stamped on it as the
year for which it applies ... does this count as an amendment to
2008?

twist: if i was unmarried in 08, got married in 09, and then bought a
house, can i still file 5404 as "unmarried" for 2008, or must i now
file as married, filing separately? we decided it'd be easier for me
to get the whole $8k since i'm amending 2008 anyway (though it's two
separate transactions)

how long does 5404 typically take to get the credit? just curious

thanks!

-c

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by removeps-groups@yahoo.com on August 27, 2009, 5:51 pm

Please log in for more thread options

> never received a 2008 stimulus ... have amended my 2008 return for

> other purposes already ... a new amended return will take about 3

> months to process ... do i have any option but to amend 2008 yet again

> and claim the $600 credit (which the IRS website has told me i qualify

> for already)?

If you never received your $600 stimulus check during 2008, and if you
qualify for $600 (or more) on your 2008 tax return, you should claim
the recovery rebate credit. Follow the worksheets for line 70 and
claim $600.

Did you do this in the original 2008 return you filed or in the
amended return? If not to both, then I'd wait for the existing
amended return to be processed, then file a new amended return. You
should get $600 plus interest.

> just purchased my first home (2 weeks ago) ... do i wait for 2009 to

> end and file my 2009 return in 2010, or can i amend 2008? the IRS

> website says to file 5404, which has a "2008" stamped on it as the

> year for which it applies ... does this count as an amendment to

> 2008?

Do it the first way -- wait for 2009 to end. However, because you're
gonna get $8000 back at the end of the year, you can reduce your
withholdings at work on form W-4. Basically, claim so many exemptions
that your federal tax drops by $2000 a month for the remaining 4
months of the year. Just remember to change the W-4 back to the
"normal" value on January 1 of next year. See
http://www.federalhousingtaxcredit.com/2009/faq.php#19. If you pay
less than $2000 a month in federal taxes, then file your 2009 return
as early as possible, say by January 15.

Someone on this newsgroup once mentioned a program from HUD or
something like that where you could get the $8000 at once now, or
something like that.

> twist: if i was unmarried in 08, got married in 09, and then bought a

> house, can i still file 5404 as "unmarried" for 2008, or must i now

> file as married, filing separately? we decided it'd be easier for me

> to get the whole $8k since i'm amending 2008 anyway (though it's two

> separate transactions)

It seems you purchased your house in 2009 (two weeks ago, congrats!)
so you can only claim a credit for it on your 2009 return. Keep in
mind that if your spouse does not qualify for the credit, then you
don't get the credit at all.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Bob Sandler on August 27, 2009, 8:31 pm

Please log in for more thread options

>It seems you purchased your house in 2009 (two weeks ago, congrats!)

>so you can only claim a credit for it on your 2009 return.

That is not correct. You have the option to amend your 2008
return to claim the credit.

The following is from the IRS web site at
http://www.irs.gov/newsroom/article/0,,id=204671,00.htm

First-time homebuyers who purchase a home in 2009 can claim
the credit on either a 2008 tax return, due April 15, 2009,
or a 2009 tax return, due April 15, 2010. The credit may not
be claimed before the closing date. But, if the closing
occurs after April 15, 2009, a taxpayer can still claim it
on a 2008 tax return by requesting an extension of time to
file or by filing an amended return. News release 2009-27
has more information on these options.

News release 2009-27 is at
http://www.irs.gov/newsroom/article/0,,id=205416,00.html

Bob Sandler

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by removeps-groups@yahoo.com on August 27, 2009, 11:07 pm

Please log in for more thread options

> That is not correct. You have the option to amend your 2008

> return to claim the credit.

> The following is from the IRS web site

athttp://www.irs.gov/newsroom/article/0,,id=204671,00.htm

Thanks for pointing out. It's a bit strange because if your 2009
income is high and you don't qualify, but for 2008 you do qualify, you
can still get the credit even though you bought the house in 2009.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Bob Sandler on August 27, 2009, 8:46 pm

Please log in for more thread options

>just purchased my first home (2 weeks ago) ... do i wait for 2009 to

>end and file my 2009 return in 2010, or can i amend 2008?

It's your choice. You can do it either way. See my reply to
removeps-groups@yahoo.com for links to more information.

>the IRS

>website says to file 5404, which has a "2008" stamped on it as the

>year for which it applies ... does this count as an amendment to

>2008?

It says to file Form 5404 WITH your 2008 tax return. Since
you have already filed, you would have to file Form 5404
with an amended return, Form 1040X. You cannot file Form
5404 by itself.

>how long does 5404 typically take to get the credit? just curious

The IRS is currently taking 12 to 16 weeks to process
amended returns.

Bob Sandler

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>