Some First Time Homebuyers Waiting On Tax Return
It's the time of year many are waiting for their annual tax return. But for some, it hasn't shown up yet. The delay mostly impacts a small number of people who claimed the First Time Homebuyers credit in their 2008 tax return. That credit was an interest-free loan and must be repaid beginning this year. That loan is repaid when people file their tax returns. The IRS recommends taxpayers in two specific categories take the following actions to speed processing: 1) When married couples file a joint return for tax year 2010 and only one spouse received the credit for tax year 2008, we recommend filing one Form 5405 with the SSN for the taxpayer who received the credit and is making a repayment. 2) When married couples file a joint return for tax year 2010 and they both received the credit on their jointly filed 2008 tax return, we recommend filing two Forms 5405, one for each taxpayer, indicating each SSN separately, and making a repayment based on the credit being split evenly by each spouse. For repayment purposes, the credit received is split equally between the two spouses because taxpayers received the credit on a joint return. 9&10's Christina Vecchioni and photojournalist Drew Parfitt have more details.