Can I Access the Funds from the First Time Home Buyer Tax Credit Before Filing my 2009 Tax Return?

Perhaps. If you have already purchased your home in 2009 and qualify for the first time home buyer tax credit or you believe you will qualify for the tax credit but have not yet bought your home, you may reduce your income tax withholding or estimated tax payments, allowing you to save up some more cash that can be used for your down payment.

You can adjust your federal income tax withholding by asking your employer to issue you a new IRS form W-4. Read IRS publication 919 for more information about income tax withholding. Finally, note that if you reduce your withholding but do not qualify for the tax credit, you will owe additional taxes on your 2009 tax return and may face penalties for underpayment.

First Time Home Buyer Resources