FTHB - Only SSI income

[thomtax]

I have looked through TTB and previous threads on this board and did not find info needed.

Client purchased home during time to qualify for FTHB. The only income is from SSI for both of them (of course), which does not put any income on the 1040. Does anyone know offhand how this would need to be filed?

Thanks to any and all for pointing me in the right direction.

LT

[Koss]

Form 1040

SSI does not get reported on the tax return.

So you file Form 1040, with all zeros, except for the Homebuyer Credit.

It's a fully refundable credit, so they should get a refund in the amount of the credit.

Can't be filed electronically. Must attach a copy of the HUD-1 closing statement.

The process seems transparent to me. The fact that they have no taxable income does not appear to disqualify them from claiming the credit.

Don't be shocked if the IRS requests additional documents, such as the deed or the mortgage note.

BMK

[thomtax]

Thanks Koss,

That was all I knew to do, but sounded odd after I thought about it. I sometimes can talk myself into thinking black is white. :-)

LT

[Koss]

Unless...

I suppose the issue lurking beneath the surface, that could potentially draw the interest of the IRS, is...

With little or no income, is the taxpayer a dependent of someone else? Even if that someone else chose not claim the taxpayer?

A dependent can't claim the Homebuyer Credit.

But if your client had an apartment lease and utility bills in their name prior to buying the house, and they can document the SSI if the IRS requests it, that should be enough to establish that the taxpayer is not a dependent.

BMK