Q:

What IRS form is used to amend tax returns for first time home buyer's credit?

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Quick Answer

Amending or correcting a tax return is done on form 1040X, according to the Internal Revenue Service. To claim or repay the first-time homebuyer credit, taxpayers generally file form 5405.

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Full Answer

Amended returns for additional refund generally have to be filed within three years of the due date of the original tax return, or two years after the tax was paid, states the IRS. The first-time homebuyer credit was available in 2008 through 2010, though some military and foreign service employees were eligible to claim it in 2011. For a 2011 return, three years after the original due date is April 15, 2015.

When applying for the first-time homebuyer credit, the taxpayer must include a copy of the closing statement, usually a HUD-1, or an executed sales contract for a mobile home, as the IRS explains. The credit is not allowed without this information.

Taxpayers who received the first-time homebuyer credit in 2009 or 2010 have to repay some or all of the credit if they did not own or live in the property for at least three years after the date of purchase, according to the IRS. Form 5405 calculates the amount of credit to be repaid. Credit received in 2008 is repaid in equal amounts over 15 years, starting on the 2010 tax return, and form 5405 is not required.

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