Amend 08 Dependent for 09 Homebuy Credit

[Aaron, EA]

Any experience or suggestions with a client that was a dependent in 2008 but in 2009 will be a single filer. Just bought a home and meets all qualifications for the $8,000 credit. Will IRS make issue with the 2008 amendment being that she is a dependent.

[Nashville]

Welcome to the Board

Aaron, welcome - good place to field questions.

The matter of the 2009 credit is new, and I believe the amended return for 2008 was only a means of getting money in the hands of the people without having to wait until next year's filing season. That having been said, potential restrictions from issues that are situation-specific to 2008 should not be a factor so long as the property and buyer are otherwise qualified under the homebuyer rules.

[Burke]

Any experience or suggestions with a client that was a dependent in 2008 but in 2009 will be a single filer. Just bought a home and meets all qualifications for the $8,000 credit. Will IRS make issue with the 2008 amendment being that she is a dependent.

Interesting. How would you amend 2008? Remove her as a dependent? Probably would not want to do that. So FTHC would be issued to parents? And they are not the ones who qualify. This is a case where you might have to wait until former dependent files 2009 return to get money.