2008 stimulus ... 2009 home purchase

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.

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

If you payless than $2000 a month in federal taxes, then file your 2009 returnas 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.

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.

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

4671,00.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

5416,00.html Bob Sandler

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

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.

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

Bob Sandler

at

4671,00.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.

thanks, bob! very good to know

First, a typo. It is Form 5405.

And I am seeing in other newsgroups/webboards that some IRS examiners are asking for the HUD-1 closing statement before allowing this refund. So it can't hurt and can help you to attach your Form HUD-1 when filing the Forms 1040DX and

5405.