[OSU19]

I have a question about filling out the tax form 1040X. I am trying to apply for the first time home buyer tax credit. I have filled out form 5405, but need to complete filling out form 1040X but I can not get the numbers to add up.

I need help understanding what I should put on lines 18-20. Line #18 should be the added value from my previous 2008 tax return and the $8,000 should be added to that total. But when I put in my total return from 2008 in line 19, then I'm supposed to subtract them and put that number in line 20. How is the total refund going to equal $8,000?

I would appreciate any help! Thanks

[ebaines]

You enter the credit from form 5405 on line 15Don't forget that line 17 includes whatever you may have paid with your original 1040 return. These carry down to line 18.

Line 19 is whatever you showed on the original return for overpayment (if any). This gets subtracted to get to line 20. Reason is that if you had an overpayment reported on your original return (that is, you were due a refund), you have alreadyreceived that refund. If you didn't subtract it, the math would make it so you'd be getting that same refund a second time.

Here's an example: suppose your original return had a total tax liability of $10,000 and total payments of $10,500, for an overpayment of $500. Presumably you have already received that $500 refund. Now with this credit the total payments on line 18 is $10500+ $8000 = $18,500. Subtract the $500 overpayment (line 19), and you get line 20 = $18,000. Your total tax (line 10) is still $10,000, so on line 22 you get $18,000 minus $10,000 = $8,000. Make sense?

[MukatA]

On the amended tax return Form 1040X, enter the credit on line 15 of Form 1040-X and enter "Form 5405" in the white space at the end of line 15, and attach the Form 5405.