IRS debuts new home credit form

The Internal Revenue Service has released the new home buyer credit Form 5405. The IRS will begin processing those tax returns in mid-February, after completion of testing and updating of systems to meet new requirements and deter fraud.

The Worker, Homeownership, and Business Assistance Act of 2009 extended credit to a broader range of home buyers. For more information and to download the new “First-time Homebuyer Credit and Repayment of the Credit” Form 5405, visit the IRS’s Web site.

And Free File is now available. Because there are numerous new tax breaks this season, Free File software can help people find the deductions and credits that they’re allowed to claim.

And, as the IRS likes to say, Free File is “fast, safe and free.”