There are several options to maximize the first-time homebuyer credit for a taxpayer.  Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before December 1, 2009 receive up to $8,000, or $4,000 for married individuals filing seperately.  Taxpayers may claim the credit either on their 2008 tax returns due April 15, or on their 2009 tax returns next year.

The filing options to consider are:

• Amend the 2008 tax return:  Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return.  The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on their 2009 return.
• Claim the credit in 2009 rather than 2008:  For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return.  This could benefit taxpayers who might qualify for a higher credit on their 2009 tax return.  This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

Bear in mind, the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers.  Taxpayers can claim 10% of the purchase price up to $8,000, or $4,000 for married individuals filing seperately.

Contact us for more information, or help filing an amended return to utilize this credit.

Source: IR-2009-27