<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	>

<channel>
	<title>RapidTax Blog &#187; 5405</title>
	<atom:link href="http://www.rapidtax.com/blog/index.php/tag/5405/?feed=rss2" rel="self" type="application/rss+xml" />
	<link>http://www.rapidtax.com/blog</link>
	<description>Tax news, personal finance, and more!</description>
	<pubDate>Tue, 02 Feb 2010 19:14:00 +0000</pubDate>
	<generator>http://wordpress.org/?v=2.7.1</generator>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
			<item>
		<title>The CP-21B and Other Forms You Need for the First Time Home Buyer&#8217;s Tax Credit</title>
		<link>http://www.rapidtax.com/blog/index.php/the-cp-21b-and-other-forms-you-need-for-the-first-time-home-buyers-tax-credit/</link>
		<comments>http://www.rapidtax.com/blog/index.php/the-cp-21b-and-other-forms-you-need-for-the-first-time-home-buyers-tax-credit/#comments</comments>
		<pubDate>Mon, 28 Dec 2009 16:00:54 +0000</pubDate>
		<dc:creator>John</dc:creator>
		
		<category><![CDATA[Tax Credits]]></category>

		<category><![CDATA[1040]]></category>

		<category><![CDATA[5405]]></category>

		<category><![CDATA[CP21B]]></category>

		<category><![CDATA[Deed]]></category>

		<category><![CDATA[first time home buyer tax credit]]></category>

		<category><![CDATA[HUD1]]></category>

		<category><![CDATA[taxes]]></category>

		<guid isPermaLink="false">http://www.rapidtax.com/blog/?p=119</guid>
		<description><![CDATA[If you&#8217;re confused about the First Time Homebuyers&#8217; Tax Credit, you&#8217;re not alone. Months after it was enacted, this tax credit is still causing taxpayers trouble. It&#8217;s not just the long delays—not just the constantly changing rules—not just the extra work on top of the already complex process of buying a new home. No, the [...]]]></description>
			<content:encoded><![CDATA[<p>If you&#8217;re confused about the <a href="http://www.rapidtax.com/blog/index.php/where-are-the-first-time-home-buyers-checks/">First Time Homebuyers&#8217; Tax Credit</a>, you&#8217;re not alone. Months after it was enacted, this tax credit is still causing taxpayers trouble. It&#8217;s not just the long delays—not just the constantly changing rules—not just the extra work on top of the already complex process of buying a new home. No, the big problem with the first time home buyer&#8217;s credit is all the new forms you have to deal with.</p>
<p>Here&#8217;s a quick list of the more common ones: where you get them, what you do with them, and what to watch out for.</p>
<p><span id="more-119"></span></p>
<h3>CP 21B Form</h3>
<p>The CP21B is a form for handling the overpayment of taxes. If you already filed a tax return, and you amend it to include new deductions (like the first time home buyer&#8217;s credit), you&#8217;ll probably end up getting one of these. The good news is that, in theory at least, the IRS will give you your money in 30 days. They say you <a href="http://www.irs.gov/individuals/article/0,,id=185389,00.html">don&#8217;t need to do anything at this point</a>.</p>
<p>But be careful. The CP 21B might get to you <em>after</em> your taxes get amended in a way that makes the money unavailable again. For example, you might be due a refund because you purchased a new home—but then find out that the IRS has decided you weren&#8217;t a first-time homebuyer after all. If you&#8217;re at all unsure, call the IRS before you start planning to spend the money (they give you a number on the form). It&#8217;s a small inconvenience that could save you big trouble later on.</p>
<h3>HUD-1 Form</h3>
<p>If you&#8217;ve purchased a home before, the HUD1 form might be familiar. This form summarizes all the costs and charges of buying a new home. You can <a href="http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf">view a copy of the HUD-1 form</a> to see exactly how it works, but it&#8217;s basically a long list of small charges.</p>
<p>Since the value of the home determines the amount of the new home tax credit, a HUD-1 form is the simplest way to document how much of a credit you should get. So when you apply for the credit, you&#8217;ll need to have this form filled out and sent in.</p>
<h3>Recorded Deed</h3>
<p>A deed simply records who owns a particular home or piece of property. While it shouldn&#8217;t be strictly necessary (since the HUD-1 form also shows who bought and sold the property), the deed is redundant. More information is better, though, so sending in a copy of your deed is a good way to ensure that what you get back from the IRS is a refund, not a request for more information.</p>
<h3>1040, 1040A, 1040EZ, or 1040X forms</h3>
<p>You&#8217;ve probably filed a 1040 of one kind or another already. If you&#8217;re collecting the first-time buyer&#8217;s tax credit, you may need to amend it. This is one of those processes that&#8217;s best done automatically with tax preparation websites or software—there&#8217;s a lot of simple math and double-checking that you may end up needing to do, and don&#8217;t want to get wrong.</p>
<h3>Form 5405: The First-Time Home Buyer Credit form</h3>
<p>This is the form you can use to apply for the First Time Home Buyer&#8217;s Credit. It&#8217;s fairly straightforward—most of the information on this form will come from the other documents you&#8217;re using—but it&#8217;s absolutely critical to double- and triple-check the <a href="http://www.irs.gov/pub/irs-pdf/f5405.pdf"> 5405 form</a> to make sure it&#8217;s entirely accurate.</p>
<p>The good news for you is that everyone&#8217;s on your side: your realtor wants you to get the payment, because it lets you spend more money on a house; the government wants you to get the money because it&#8217;s being spent in order to raise home prices; and the company or individual who helps you with your taxes has every reason in the world to want you to get this extra cash.</p>
]]></content:encoded>
			<wfw:commentRss>http://www.rapidtax.com/blog/index.php/the-cp-21b-and-other-forms-you-need-for-the-first-time-home-buyers-tax-credit/feed/</wfw:commentRss>
		</item>
	</channel>
</rss>
