Completing Form 5405

• 1). Enter the address of the newly purchased home on to part A. Enter the date of purchase on to part B.
  
  
• 2). Check the "Yes" box if your home was purchased before April 30, 2010. Also check this box if you purchased your home between April 30, 2010 and Oct. 1, 2010 but entered into a contract before May 1, 2010 to buy the house before July 1, 2010. If neither scenario applies to your situation, you cannot claim the tax credit with one exception: Members of a uniformed service, employee of the intelligence community or a member of the Foreign Service can claim the credit if they were out of the country for at least 90 days from Dec. 31 to May 1. Check box "D" if this applies.
  
  
• 3). Check the box labeled "Yes" in part E if you bought your home from someone related to you or your spouse. You cannot take the credit. If you did not, check "No" and continue.
  
  
• 4). Check the box on section "F" if you are claiming the credit on an amended return.
  
  
• 5). Enter the purchase price of your new home on line 1. Multiply the amount entered in line 1 by 10 percent and enter the amount on line 2.
  
  
• 6). Check the box that describes your situation in line 3. Check the first box if you are a first-time homebuyer who has not owned another home within the past three years. Check the second box if you are a longtime resident who has owned and resided in your main home for at least five consecutive years during the past eight years. Refer to the 5405 instructions if you have questions.
  
  
• 7). Enter the corresponding amount from the box you checked on line 3 onto line 3. First-time homebuyers enter $8,000 and longtime residents enter $6,500.
  
  
• 8). Enter the smaller of lines 2 and 3 on to line 4. If you are married but filed separately or shared in the purchase of the home with someone other than your spouse, enter your share of the amount. Refer to Form 1040X instructions for clarification.
  
  
• 9). Use your previously filed tax return and enter the amount of your modified adjusted gross income on to line 5 of form 1040X. If you filed form 1040, the amount is on line 38.
  
  
• 10
  
  Enter $75,000 ($150,000 if married, filing jointly) if the home was purchased before Nov. 7, 2009 or $125,000 ($250,000 if married, filing jointly) if the home was purchased after Nov. 6, 2009 on to line 6.
  
  
• 11
  
  Compare lines 5 and 6. If line 5 is more than line 6, subtract line 6 from line 5 and enter the amount into line 7. If that amount is more than $20,000, you cannot take the credit. If less than $20,000, divide the amount of line 7 by $20,000 and enter this decimal into line 8 (round the number to three places). Multiply line 4 by line 8 and enter this amount on to line 9. If line 5 is not more than line 6, skip lines 8 and 9 and enter "0" on to line 9.
  
  
• 12
  
  Subtract line 9 from line 4 and enter this amount on to line 10. This is the amount of your credit.
  
  

Completing Form 1040X

• 1). Complete sections A and B and lines 1 through 13 on Form 1040X by referring to your previously filed Form 1040. In section C, the form requires you to explain why you are filing Form 1040X. Explain "I am claiming the First-Time Homebuyer Tax Credit."
  
  
• 2). Check the box labeled "5405" on line 14 of Form 1040X and enter the amount of your credit.
  
  
• 3). Enter the amount from line 10 of Form 5405 on to line 14 of Form 1040X. This is the amount of your tax credit.
  
  
• 4). Continue filling out Form 1040X using the information on your previously filed 1040 while calculating the inclusion of the First-Time Homebuyer Credit.
  
  
• 5). Sign and mail your return to the address listed for your area in the Form 1040X instructions. Include any required documentation with your forms. Refer to the instructions for clarification.