Apparently I can't use my trusty old 1040EZ OR even e-file.

1st Q: Since I purchased in Aug 09 do I just fill out the 1040 and 5405 and I'm good to go? Do I also need a copy of the closing statement?

2nd Q: Why the hell does my taxable income come out higher in the 1040? The standard deduction on the 1040(5700 in my case) is much less than on the 1040EZ (9350) resulting in a higher taxable income.

(This is my first 'big boy' year as I just graduated college in May. Please be gentle as all my previous tax filings have been simple. Thanks in advance for free advice.)

1 ...

Report Post

Posted by Newbomb Turk

perfectanschlagen

Member since May 2008

9961 posts

Posted on 1/21/10 at 8:27 am to JoeBobRuby

Q2: Yes, include your closing statement. And, since you purchased your home prior to 11/6, you can use the 2008 version of the Form 5405 and can file the 1040X for 2008 if you choose. Also, you can't e-file on the FTHBC, mainly because of the requirement to include your closing statement.

Q2: The 1040EZ amount ($9,350) is a combination of your standard deduction and personal exemption. If you're filing the 1040EZ, presumably you're not taking any other exemptions, nor are you itemizing. On the 1040, the standard deduction and personal exemptions are taken on different lines. You only use the standard deduction ($5,700 for single filer) if you're not itemizing. Also, you may claim more than one exemption ($3,650 per exemption), if you qualify for such.

Note - $5,700 plus $3,650 equals .....

This post was edited on 1/21/10 at 8:46 am

1 ...

Report Post

Posted by JoeBobRuby

Member since Sep 2005

5921 posts

Posted on 1/21/10 at 8:39 am to Newbomb Turk

I'd rather just file it on 2009 instead of 2008. So can I use the 2008 5405 coupled with the 2009 1040?

I'm an idiot. Now I see the exemption section

Thanks

1 ...

Report Post

Posted by Newbomb Turk

perfectanschlagen

Member since May 2008

9961 posts

Posted on 1/21/10 at 8:44 am to JoeBobRuby

No. If you file for 2009, you must use the 2009 form. The 2008 form on the IRS website had this instruction --

quote:
Changes have been made to the first-time homebuyer credit by Public Law 111-92 … As a result, this 2008 Form 5405 can be used only for homes purchased before November 7, 2009, for which you choose to claim the credit for 2008. We will issue a new revision of Form 5405 soon. The new revision must be used for all homes purchased after November 6, 2009 (whether the credit is claimed for 2008 or for 2009) and for all claims on 2009 returns for homes purchased any time in 2009 or in 2010.

The new 2009 Form was posted this week on the IRS website --

2009 Form 5405

This post was edited on 1/21/10 at 8:50 am

Page 1