New Ways For Homebuyers to Get Assistance

New York Senator Kirsten Gillibrand today announced several new ways that home buyers can get the $8,000 tax refund in as little as ten days.  Families who recently purchased a home or are considering buying a home in the next few months can access rapid relief by filing out one simple form.

“This new credit will let new home buyers put money back into their pockets quickly and easily,” said Senator Gillibrand.  “I commend President Obama for his leadership in addressing the nation’s housing crisis.  By encouraging first time buyers to enter the market, we can help get New York families into new homes and address the decline in the housing market which has caused so much distress in our economy.”

The $8,000 refund was enacted as part of the American Recovery and Reinvestment Act and is available to all first time home buyers.  Home buyers qualify for the full credit of 10% of purchase price up to $8,000 for homeowners with an annual income of less than $75,000.  The credit can apply to all homes purchased before December 1st of this year.

Taxpayers may claim the refund by:

1.      Filing an extension on their 2008 tax returns.  Home buyers would receive their credit within 10 days after filing their final return.

2.      Amending their 2008 return or filing their 2008 taxes and submitting an amended return later.

3.      Claim the credit on their 2009 taxes.  This would give filers more time to claim the credit, but they would not receive the refund until the processing of their 2009 return.

To claim the credit, filers must submit IRS form 5405, available on the IRS website.  http://www.irs.gov/pub/irs-pdf/f5405.pdf