How does the IRS determine if you qualify for the first time home buyer tax credit?

Answer 1

By checking your 1040 income tax return and making sure that you have met all of the rules and submitted all of the necessary documentation forms and other information that is required to determine if you are a qualified first time home buyer for the tax credit.

Go to the IRS gov web site and use the search box for First-Time Homebuyer Credit

Q. What do I have to attach to my 2009 or 2010 return to prove that I bought a new home in order to claim the credit?

A. If you claim the credit on a 2009 (or later) return, you must attach a copy of your settlement statement. For most homebuyers, this will be a properly executed Form HUD-1, Settlement Statement (U.S. Department of Housing and Urban Development) that includes:

• Names and signatures (if available) of all parties involved,
• Property address,
• Purchase price, and
• Date of purchase.

If you purchased a mobile home and do not have a settlement statement, you should attach a copy of your executed retail sales contract showing all parties' names and signatures, the property address, the purchase price and the date of purchase.

If you are claiming the credit for a newly constructed home and you do not have an executed settlement statement, you should attach a copy of your certificate of occupancy showing the name of the taxpayer, the property address, and the date of the certificate.

Q. What do I do if my settlement sheet does not have any signatures?