Bennet Kicks Off Colorado-Wide Initiative to Alert First-Time Homebuyers to New $8,000 Tax Credit in Economic Recovery Package

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Bennet Kicks Off Colorado-Wide Initiative to Alert First-Time Homebuyers to New $8,000 Tax Credit in Economic Recovery Package

Colorado's First-Time Homebuyers Now Have Several Options to File For New Tax Credit - Even If They Have Already Filed Their Tax Return This Year

Bennet Releases ‘First-Time Homebuyer Tax Credit Alert' on How to Take Advantage of New Tax Credit, Save Thousands of Dollars This Year

As the tax filing deadline quickly approaches, Michael Bennet, Senator for Colorado and member of the Senate Committee on Banking, Housing and Urban Affairs, today kicked off a statewide initiative to alert Coloradans to a new first-time homebuyer tax credit for 2009 home purchases that was included in the economic recovery package. Homebuyers now have additional options at their disposal to claim the $8,000 first-time homebuyer credit on this year's taxes, even if they have already filed their tax returns.

To help ensure Coloradans take advantage of the new credit and save thousands of dollars this year, Bennet released a "First-Time Homebuyer Tax Credit Alert" - a guide on how to take advantage of the new tax credit.

"I want to make sure that Colorado's first-time homeowners are able to save as much money as possible, as quickly as possible - especially in these tough economic times," Bennet said. "Homebuyers can maximize the new tax credit delivered in the economic recovery package as soon as this year. We are going to do everything we can to make sure Coloradans have the information they need to quickly put money back in their pockets at a time when they need it most."

The "First-Time Homebuyer Tax Credit Alert" will be made available in all of Bennet's regional offices and outlines the different options for first-time homebuyers to claim the tax credit. Additionally, Bennet pledged to continue working with key homeowners, realtors, and housing groups across Colorado in educating and helping first-time homebuyers on how to take advantage of the new tax credit this year. Bennet's staff also held an important informational meeting with these groups in Colorado to start an outreach campaign on the credit.

Coloradans who recently purchased a home or are considering buying in the next few months have several different options to claim the new homebuyers tax credit even if they've already filed their tax return for this year.

Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home between January 1, 2009 to December 1, 2009 can file for a tax credit of up to $8,000, or $4,000 for married individuals filing separately. Coloradans, and first time homebuyers across the nation, can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year. Additionally, taxpayers who have already filed a return but did not claim the credit, are able to amend their returns.

The filing options, according to the Internal Revenue Service (IRS), are:

• File an extension. Taxpayers who haven't yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
• File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
• Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
• Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

The amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

For homebuyers who bought a home between April 8, 2008 and December 31, 2008 there is a $7500/$3750 credit available. However, Coloradans who bought homes in this period must repay the credit over a 15 year period.

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