First Time Homebuyer ?

[cphillipsEA]

I have a client who bought a home in 2009, this client is not required to file a tax return because they only receive disability income.

Can he file and receive the FTHB credit?

[WhiteOleander]

Yep. It is refundable.

[tpnl]

Possible

Does the new credit have to be paid back?

[MariaR08]

No repayment required.

http://www.federalhousingtaxcredit.com/

~maria

[Bees Knees]

The thing to do is file a 2008 return (or amend the 2008 return) and claim the 2009 purchase on the 2008 return. That way the taxpayer does not have to wait until next year to file a 2009 return to get the refundable credit. The new higher refundable credit applies and no recapture is required, even when you elect to report it on the 2008 return.

See TTB new update: http://www.thetaxbook.com/view_update.asp?1=128