The IRS has posted some guidelines and FAQs:

Overview: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Filing options to consider: http://www.irs.gov/newsroom/article/0,,id=205416,00.html

First-Time Homebuyer Credit Questions and Answers: Basic Information: http://www.irs.gov/newsroom/article/0,,id=206291,00.html

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009: http://www.irs.gov/newsroom/article/0,,id=206293,00.html

~ Lana

I know that everyone has answer your question in one way or another, but the only one that can truly answer it correctly will be your accountant or CPA.
Thanks,

The First Time Buyers form 5405 is used to calculate what you are entitled to receive for the credit- it is carried over on your 1040 federal tax form. It is then added as a credit at the end of the 1040 form and is used to calculate if you owe or due a refund. Since you know that you owed $1500 and paid it then if you qualify for the full amount you should show a refund of $8000. If you are doing an amended return it will go onto a 1040X then mail to the IRS. It will take about 6-8 weeks for the process. If for some reason you have something attached to your refund (back child support, back taxes, student loans) the IRS will use this money to pay off this debt first before they give you the remainder of the money (if there is any left)

Yes! Isn't it great! Now the only way you'll get the $8000 is if you meet the income guidelines and you buy a house for at least $80k. The credit is off the tax bill you were to pay in 08 or 09. So if you should have paid the IRS at least $8,000 in taxes for '08 or '09 then you would ammend your return and get $8,000 back. The income limitations are single $75k income married $150k. This will have to be your primary residence and you cannot have owned a property in the last 3 years. Also if you sell the property you have to wait 36 months from date of closing otherwise you have to pay the money back. Oh and don't forget you have to close by 11/30/09 to get the credit. Happy house hunting. let me know if I can help.

As long as you have acquired the property with the time contraints, you can amend your 2008 tax return for the $8K tax credit. The purchase must take place between January 1, 2009 and December 1, 2009. You do not have to pay this back but you must keep the residence for at least three years. As I mentioned below, there are income restrictions.

If you purchased the home prior to December 31, 2008, then you you would be eligible for the $7,500 tax credit/loan. This tax credit was structured like a loan. You can get up to $7,500 in a zero interest 15 yr loan. Payments begin two years after you receive the credit with min. annual payments of $500 per tax refund.

Sincerely,
JACQUELINE CLARKE
Down Payment Assistance Specialist/Loan Officer
Enterprise Mortgage Group
Winter Park, FL
Cell: 407-739-3853

Link below has some useful info regarding options for the credit:

http://tampafloridarealestatefinder.com/864/first-timers-buy…

Any home purchased from January 2009 to December 1 2009 is eligible for the 8K tax credit. You would request the tax credit next April. This April was for homes purchased in 2008 and it was for the 7500 credit that has to be paid back. If you are eligible for the tax credit next April 15th based upon your purchase this year - any unused portion of the tax credit will be paid to you. You do not have to pay it back. I hope this answers your question.

Hi Ranjit,

The amount of the tax credit is based on 10% of the sale price not to exceed $8,000. Your individual income cannot exceed $75,000 or $150,000 per couple. Also, if you are purchasing with another individual, you can split the tax credit based on the percentage of ownership.

Those are the basic answers. However, you should contact your tax professional to determine the final tax credit. There is a specific form that you must file to obtain the refund. Go to IRS.gov for further information.

Good luck,
Jacqueline Clarke
Down Payment Assistance/Loan Specialist
Enterprise Mortgage Group
Winter Park, FL
Cell: 407-739-3853
Email: jclarke@enterprisemortgagegroup.com

Christine or any one,

My question was more on how the calculations would work as I have already paid the amount I paid to IRS already. where do I indicate that I have paid the money and amend it? Any ideas?

P.R., you may file an amended 2008 tax return on Form 1040X. (Form 1040X is available at http://www.irs.gov). A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, CLOSINGS must occur BEFORE December 1, 2009 for purchases to be eligible for the credit.