2009 Homebuyer's Credit

The IRS has issued new instructions about the documentation that must be attached to your 2009 Federal Income Tax Return if you wish to claim the new homebuyer's tax credit. All taxpayers must attach a copy of the settlement statement showing all parties' names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed form HUD-1 Settlement Statement.

In addition, those taxpayers who qualify for the long-time resident of the same main home, must attach the following documentation covering a five-consecutive-year period. Form 1098 Mortgage Interest Statement, or Property Tax Records, or Homeowner's Insurance Records.

If the required documentation is not attached, the claim will be denied! The need to attach this documentation to your Federal return means that you will not be able to E-file your Federal return. Ohio residents are required to E-file their Ohio state income tax returns. Also, the IRS expects those returns claiming this credit to take at least an extra 3 weeks to process.