Help Topic:  Amend Federal Return to Include Tax Credit to Aid First-Time Homebuyers

To amend your return to include Federal Form 5405 'First-Time Homebuyer Credit', if you have purchased a home since you filed your 2008 return and wish to receive the credit now instead of waiting to file for it with your 2009 return, follow the instructions below to first enter the information for the credit in your return and then file the amended Form 1040X to send to the IRS to request your credit.

IMPORTANT: Be sure to first have a copy of your original return as filed because once you follow the steps below the return will be changed in order to contain the information needed to file the amended return and you will no longer have the option to print the return as it was when originally filed.

Enter the information for the First-Time Homebuyer Credit:

1. Log into your TaxACT Online return or start your TaxACT Desktop program and Click on the Federal Q&A tab
2. Click to select 'Other Credits' and then Click on the Review Topic button on the Quick Q&A Topics screen (you will only see the Quick Q&A Topics screen if you have been through the Federal interview questions once already, if you do not, hover your mouse over the Federal Q&A tab, Click on 'Federal Tax Summary' and then Click on the Review Q&A Topics button to reach the Quick Q&A Topics screen)
3. Click to select 'First-time Homebuyer Credit' and then Click Continue on the right side of the screen
4. The program will proceed with the interview questions for you to enter or review the appropriate information

Be sure to also change your address in the Basic Info tab if you are already residing in your new home and wish the refund check to be sent to that address.

Once the information is entered, to complete Form 1040X for the amendment:

Please note that you must upgrade to the Deluxe version of the software if you are currently using the Standard version in order to complete the amendment process. If you are using the Standard version of the software you will be prompted to upgrade to the Deluxe version when you access the amendment process in the steps below.

1. Hover your mouse over the Filing tab and Click on 'Amend Federal Return'
2. Review the instructions on the first two screens. Note that Step 1 (printing a copy of the original return) you already completed in following the instructions above and Step 2 (making the changes in the return) would also already be completed by following the instructions above if the First-Time Homebuyer Credit is the only reason you are amending the return
3. Click Continue three times to reach the screen where you start to enter the information from your original filed return
4. If the First-Time Homebuyer Credit is the only reason you are amending the return you should find that all amounts to be entered in the "Original amount" column should be the same as the "Correct amount" column until you reach the screen 'Amended Return - Other Credits' where the difference between the two columns should be the credit calculated on Form 5405
5. On one (and ONLY one) of the 2 following screens ('Amended Return - Tax Paid' or 'Amended Return - Overpayment') you need to enter either the amount paid with the original return or the refund amount received from the originally filed return
6. On the screen 'Amended Return - Explanation of Changes' enter "Line 15 - Requesting credit on Form 5405 for home purchased in 2009".
7. Continue through the steps until you are prompted to print Form 1040X and on the following screen will be the information as to where to mail the amended form. Also print and enclose Form 5405 with the Form 1040X.

Amending Your Federal Return
IRS Information on the First-Time Homebuyer Credit