I did something today that I’ve never done before – I filed an amended tax return. Back in March, I filed my taxes but didn’t claim the first-time homebuyer credit. Armed with the proper paperwork, forms, and software, it took, literally, 10 minutes to amend the return.
According to the IRS website, returns claiming the first-time homebuyer credit must be mailed, with correct documentation, and cannot be e-filed. This is the primary reason we did not claim the credit on the initial return. We were expecting a small, but not insignificant, tax refund, even without the homebuyer credit, and didn’t want the processing of the refund to be delayed by the processing of the tax credit documentation.
Today, I used tax preparation software to amend the return. I then printed out a copy of the amended return. After attaching proper documentation, including the settlement statement, I put everything into an envelope and mailed it to the IRS. The process was very simple. (A settlement statement is a statement that summarizes all the fees and charges that both the homebuyer and seller face during the settlement process of a housing transaction. Source: Investopedia)
It may be several months before the amended return and the homebuyer credit are processed. That’s cool. I can wait. In the meantime, I’m making plans for the money. A portion will go into various savings categories, another portion will go towards the purchase of some new furniture for the kitchen, and another portion will go towards reducing the principal balance on our mortgage.
I am not a tax-professional, nor do I play one on the internet. I always consult with a tax professional before making any tax-related decisions.