What is Form 8859?
Form 8859 is designed for first-time homebuyers in the District of Columbia. This tax form allows you to claim any unused credits from previous years, especially if income restrictions limited your ability to use them before. By filing this form, you can carry forward up to $5,000 in credits to future tax years when your income may be lower. This can significantly reduce your federal tax liability, making homeownership more affordable and ensuring you take full advantage of available savings.
What is Form 8859 used for?
Form 8859 is important for those who bought their first home in D.C. and want to make the most of their tax credits. Here’s what it’s used for:
- Claim Carryforward: Use the form to claim any unused credit from the prior year.
- Determine Eligibility: Verify if you qualify for the credit based on home purchase details and income thresholds.
- Reduce Tax Liability: Apply the credit to reduce your tax liability to zero.
- Comply with Recapture Rules: Ensure you comply with recapture rules if the home ceases to be your primary residence.
How to fill out Form 8859?
- 1
Enter the amount from Line 4 of your prior year's Form 8859 on Line 1.
- 2
Calculate the tax liability limit using the worksheet provided.
- 3
Enter the smaller of Line 1 or Line 2 on Line 3 as a nonrefundable tax credit on Schedule 3, Line 6h.
- 4
If applicable, enter any excess amount on Line 4 to carry forward to the next tax year.
Who is required to fill out Form 8859?
Residents of the District of Columbia who previously claimed the first-time homebuyer tax credit are responsible for completing Form 8859. This includes individuals who purchased a home in D.C. on or before December 31, 2011, and meet specific income and residency criteria.
Those with unused credits from the original program must file this form to carry forward their first-time homebuyer credit to future tax returns, such as Form 1040 or Form 1040NR.
When is Form 8859 not required?
You do not need to file Form 8859 if you claimed the full District of Columbia first-time homebuyer credit last year. Additionally, if your modified adjusted gross income (MAGI) surpasses $90,000 for single filers or $130,000 for married couples filing jointly, the form is also unnecessary.
When is Form 8859 due?
The deadline for Form 8859 is April 15th of the following year. This form is necessary if you want to claim a carryforward of the District of Columbia first-time homebuyer credit from the previous year, especially if you couldn't use it due to income limitations. Make sure to submit it on time to avoid any issues.
How to get a blank Form 8859?
To obtain a blank Form 8859, Carryforward of District of Columbia First-Time Homebuyer Credit, simply visit our website. The Internal Revenue Service (IRS) issues this form, and we have it pre-loaded in our platform for you to fill out. Remember, our website helps with filling and downloading forms but does not support filing.
Do you need to sign Form 8859?
No, you do not need to sign Form 8859. This tax form is specifically designed to claim a carryforward of the District of Columbia first-time homebuyer credit, and it does not require a signature. However, it's always a good idea to check for the latest updates to ensure you have the most current information. Once you're ready, use PDF Guru to fill out the form, download it, and take care of the submission process elsewhere.
Where to file Form 8859?
To submit Form 8859 for the District of Columbia First-Time Homebuyer Credit, mail it to the appropriate IRS address. Check the IRS website for the correct mailing address based on your tax return type.
You can also use Private Delivery Services designated by the IRS. This method ensures your form is considered timely filed or paid when mailed on time.
