If you’re planning to take advantage of the First-Time Homebuyer’s tax credit or the more recently announced “long-time homeowner new purchaser” credit – you will not be eligible to eFile your tax return when you claim the credit. To find out more about these credits, see the article at this link.
In a move to reduce fraudulent claims, the IRS recently decided that in order to claim this credit, proof of the purchase of the new home must be attached to the return with form 5405 and the entire return must be paper-filed.
This will likely add at least a week to the processing time, and likely much more as the filing season progresses. So if you’re claiming this credit, keep in mind that your turnaround for your refund will be extended specifically because of this credit. I’m sure it will be worth the wait!
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