I am planning to buy a house sometime soon. I understand that to avail $7500 tax credit, I need to check something while filing my taxes. Here is my question:

1. Let's say if I buy my house in March 09 and file my tax return in February 09, how this tax credit will work? Will IRS give me the tax refund as well as 7500 tax credit this yr?

Can someone explain this?


I am on H1B (resident for tax purposes). Got married this yr with my wife being on H4. I received $600 (Economic Stimulus Rebate) when I filed my 2007 taxes in March 2008.

What would be my best bet to secure economic stimulus rebate this yr as well? Should I file joint and save on my over all refund rather than worrying about ESR?

Please help.

1) If you buy the house in 2009, the housing credit will be taken on your 2009 tax return. However, that credit is not really a credit, but rather a loan that must be paid back in each of then successive years @ $750 per year. It is, in effect, a $7,500 interest-free loan.

As for the rebate, you can file Married Filing Separately to keep your wife's ITIN off the tax return. Once you get the ESR, you would then amend your return to file jointly.

This is perfectly legal and in fact is recommended as a course of action on the IRS website.

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Originally Posted by AtlantaTaxExpert

1) If you buy the house in 2009, the housing credit will be taken on your 2009 tax return. However, that credit is not really a credit, but rather a loan that must be paid back in each of then succesive years @ $750 per year. It is, in effect, a $7,500 interest-free loan.

As for the rebate, you can file Married Filing Separately to keep your wife's ITIN off the tax return. Once you get the ESR, you would then amend your return to file jointly.

This is perfectly legal and in fact is recommended as a course of action on the IRS website.

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Thanks for your reply.

1. So you mean if I buy house in 2009, I will get the $7500 loan in 2010. Right? What if I don't file my tax return for 2008 till I buy a house in 2009 and then file. Still it will be 2010 when I will see the money?

Please clarify on this.

2. In case if my wife get SSN on F1 visa. Will I be eligible for the ESR if we file jointly? Or is it mandatory for both of us to be resident alien for this purpose?

Also, do you have the link to IRS website where they say that I can file an amendment.

Really appreciate your help in this.

1) Yes, you get to claim the credit on your 2009 tax return in 2010. That is my understanding on how the credit works. There [B][I]may [B][I]be a provision to allow you to claim the credit on your 2008 return if you purchase the house prior to filing the 2008 return, but I have not yet done any research on this credit, so I am not sure.

2) If your wife has a SSN, you BOTH should be eligible for the ESR if you file jointly.

Look under FAQ for the ESR on the IRS website for the filing separately, then amend procedure.