3. Not following guidelines to claim home buyer tax credit
In less than two years, three changes were made to the home buyer tax credit. All the changes and accompanying time limits, income thresholds, home price restrictions and what-not are a tax-filing minefield. But if the guidelines and tax rules are followed carefully, it could net a first-timer a tax credit of up to $8,000 and a move-up buyer a credit worth up to $6,500.
So if you bought a house last year, or plan to close on one by June 30 of this year, take a close look at the homebuyer credit and make sure you fill out Form 5405 correctly. And remember, you can't e-file your taxes if you claim this credit, so use your software to fill out your return and attachments and then mail it in.