The Homebuyer Assistance and Improvement Act of 2010, signed by the President on July 2, 2010 extended the closing deadline from June 30 to Sept. 30 for any eligible homebuyer who entered into a binding purchase contract on or before April 30 to close on the purchase of the home on or before June 30, 2010. The new law addresses concerns that many homebuyers might be unable to meet the original June 30 closing deadline.

The 2009 TaxACT program will not be updated this late in the tax year. To claim the Homebuyer Credit if your closing was done after June 30, 2010, follow the steps below to claim the credit using TaxACT.

1. Log into your 2009 TaxACT Online return or Open your Desktop program.
2. Click on the Federal Q&A tab.
3. Expand Other Credits.
4. Select First-time Homebuyer Credit and Repayment of the Credit.
5. Select Go to the interview for the Homebuyer Credit and click Continue.
6. In order to get the Homebuyer Credit to calculate, you must enter a "Date Home Purchased" prior to 07/01/2010. For example, enter 06/30/2010. You will later have to manually transfer the information from the "old" version of Form 5405 that prints from TaxACT, to the "new" version of Form 5405 released by the IRS on July 15, 2010, (see link to print this form below).

   After the purchase price and purchase date is entered, click Continue.

7. On the screen titled "Homebuyer Credit – Questions – 1", answer the questions appropriately for your situation.

   (NOTE: Question #2: "Was the home purchased after April 30, 2010, and before July 1, 2010, and did a binding contract for the purchase of the home exist before April 1, 2010?" – The extension of the Homebuyer Credit is directly related to this question. Answer this question "YES".) Click continue when finished.

8. Answer the questions appropriately for your situation on the screen titled "Homebuyer Credit – Questions – 2.” Click Continue when finished.
9. On the screen titled "Homebuyer Credit – Credit Claim in 2009", check the box Check here to claim the credit on a home purchased after 2009 on your 2009 return. Click Continue.
10. Proceed through the Form 5405 questions to complete the preparation of the form.

To print the "new" Form 5405", please see "Related Links" below.

To print the "old" Form 5405:

Click on Forms.

Expand Federal Forms and Schedules.

Expand Form 5405 – First-Time Homebuyer Credit and Repayment of the Credit.

Online Users:

Click Print.

Click Your Federal Form 5405.

Click on the Printer icon to print Form 5405.

Desktop Users:

Double click on Federal Form 5405.

Click on the pink Printer Icon above Form 5405.

Transfer the information from the old version of Form 5405 into the new version of Form 5405. Be sure to write the correct home purchase date under Part I, line B as the workaround required a purchase date prior to 07/01/2010 be entered in order for the credit to calculate in the program.

For additional information on what to attach to your return to support your home purchase (i.e., settlement statements), please click on the Related Links.

Related Links: