5045 - The Short Form That Could Mean a Big Tax Credit

The government has introduced several measuresmust be purchased between January 1, 2009 and April
that seek to bolster a flagging housing market. One,1, 2010 and can't be valued at over $800,000.
the First Time Homebuyers' Tax Credit, does exactlyThe First Time Home Buyer's credit is worth up to
what you'd expect: provides a tax incentive to those$8,000 so filling out the 5045 form correctly is vital: it
purchasing a house for the first time. Like anythingnever hurts to double or triple-check for accuracy.
government-related, however, there's paperworkLuckily, most of the information on the 5045 form can
involved: the 5045 form.be found elsewhere, so as far as government
Before you actually file the 5045 form, you shouldpaperwork goes, it is fairly low-stress: essentially, you
make sure you're actually eligible for the First Timewill need to know your reported income and the value
Home Buyer's Credit. Qualified applicants must be 18 orof your house.
older, and neither they nor their spouse can have everTake heed: the IRS has announced on its website that
purchased a house. If filing singly, the applicant can'ta new version of the 5045 form is expected by
have an income of greater than $75,000 (if the houseJanuary 10, 2010. Before you begin filling out this form,
was purchased before November 6th, 2009) orbe sure you're using the correct version and following
$125,000 (if the house was purchased after Novemberthe correct rules and regulations to ensure you receive
6th). For applicants filing jointly, the income limits arethe full First Time Homebuyers' Tax Credit.
$150,000 and $225,000 respectively. The house itself