Well it appears that the first time home buyer tax credit has run into some delays. If a Chicago first time home buyer purchased a home after November 6th then you should not expect your tax credit for a while.
Prior to November 6th if you bought a home after closing you could file amended taxes and expect to receive your refund. Everything changed after November 6th. November 6th was when the first time home buyer credit was extended and expanded. As of November 6th the IRA has not allowed anyone to file. For those Chicago first time home buyers who had closed on the purchase of a home prior to November 6th they could file a form 5405 to claim the credit right away with no additional documentation. For those first time home buyers closing after November 6th unfortunately there was no form until today.
With the previous first time home buyer tax credit program other than filing the 5405 form there was no other documentation required. Now move up buyers will have to prove that they have lived in their current home five of the prior eight years. First time home buyers will have to provide a signed copy of the settlement statement (HUD-1) attached to their tax return. Since there is no way of sending along the settlement statement with an E-File first time home buyers will have to file a paper return. Yes your heard that right you will now have to file a paper return rather than electronically filing. What does this mean for Chicago first time home buyers? Having to file a paper return means that first time home buyers and move up buyers may be looking at another three months before they get their returns.
Unfortunately, honest first time home buyers and move up buyers will suffer due to people claiming the credit who had not purchased a home. One tax preparer was convicted of falsely claiming the tax credit for 15 of his clients.
Here is a link to the actual tax updated tax form and the instructions:
First time home buyer tax credit form
Instructions for completing the form
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