INSTRUCTIONS : FIRST-TIME HOMEBUYER CREDIT AND REPAYMENT OF THE CREDIT (Form 5405)

The Form 5405 is a United States Internal Revenue Service tax form used for claiming the first time home buyer credit and repayment of the credit. This form is used if a taxpayer has purchased their first home during the tax year.

The Form 5405 can be obtained through the I.R.S' website or by obtaining the documents through a local tax office.

First, fill out your name and social security number at the top of the form.

1. In part I, you must provide general information in regards to your home purchase.

2. Provide the address of the home purchased, the date of purchase, the contract date, if you purchased the home from a person related to you, or if you are electing to claim the credit on your return for the year before the year of home purchase.

3. Part II requires that you supply the IRS with some details about your home purchase.

4. On line 1, enter the purchase price and multiply this number by 10% on line 2.

5. Select why you qualify for the tax credit on line 3. If neither box applies to you, you may not qualify for the tax credit.

6. Follow the instructions on the next lines to ensure that you add your tax credit correctly.

7. From your 1040 tax return, enter you modified gross income on line 5.

8. Continue to follow the instructions to add and multiply the numbers, until you get your total tax credit amount. Enter this amount on line 10.

9. The Form 5405 also contains a second sheet, which is to only be filled out if you are modifying your homeowner tax credit.

10. If you are modifying your credit, fill out Section III and indicate why you are modifying the credit in the appropriate box on line 13.

11. If you are repaying a tax credit from 2008 or 2009, fill out the information as needed in section IV.

12. Once completed, attach the tax credit form or modification to your yearly 1040 tax return.

13. As with all tax forms, retain a copy for your personal records.