Claiming New Home Buyer's Credit on Tax Return?

[Imagebuffet]

After I received my new home buyer's tax credit last year, the IRS sent me a form (1099-something). I thought I was supposed to report this on my 2009 tax return, but I did not see anything about it. What should I do?

[Jeff_Green]

Read about it. There is a place on your 1040 form in which you insert the amount of your tax credit as determined by form 1099. Then you mail both forms in. Note, this can not be done through efile.

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Edited to add:
On your 1040 form, line 67 is kind of confusing when it says "First Time Homebuyer Credit. Attach form 5405"... Okay, so it isn't confusing.

[Jeff_Green]

After looking at your question, 1099 is an income form I believe and shouldn't have anything to do with your Home buyers credit. If you bought your house last year, did you claim it last year? If not, claim it on this years return. It sounds like the 1099 would be for something else.

[Imagebuffet]

Jeff, I believe you are talking about claiming the tax credit initially, prior to receiving it. I have already done this, and the government sent me a receipt in the form of a 1099. So, do I get taxed on my tax credit that I received? I'm thinking that I don't, as it should be like a tax refund, and we don't get taxed on federal refunds (though, I think the feds tax state refunds, but Texas generally doesn't have to worry about that).

[Jeff_Green]

Oh, I see what you are saying now. I am not a tax adviser so what I say has no actually merit, but it is my understanding that there is no tax on the credit. There used to be a couple years ago... well, it was actually a loan... but they did away with that. I just filed mine about a month ago so I have yet to receive the 1099, but everything I have heard, there is no taxation on it.

[janikphoto]

I get 1099's from my clients every January, so it would have to be filed just like any other non-employee income.

[DSL_PWR]

Yes if you take that credit, you get taxed on it.

[utdbear]

I believe if you bought the house in 2008, you had to repay that tax credit. For houses bought in 2009, you do not have to return it(part of the Obama stimulus plan).

[Imagebuffet]

I remembered something else, too. The IRS paid me interest on the tax credit. I will have to pay taxes on that interest.