Amending a return - Homebuyer Credit Rejection

[Ty232301]

Hello, I'm amending my return (Not related to the homebuyer Credit Repayment) and the amended return is getting rejected stating the homebuyer credit repayment is larger than the database. This is NOT correct, i verified IRS and balance is paid in full (since I originally paid in full on my initial returns in March) it's as if TurboTax is trying to submit my previously paid amount (when I originally filed in March) for a 2nd time, thus the figure isn't matching as I technically paid the homebuyer credit in March.

Anyone have this issue, long shot since its a niche credit back from 2008 and this is for an amended return for 2021 tax year.

I can't update the homebuyer credit field to show its now paid in full, cause then TurboTax is trying to give me a bigger refund on this amended return which would not be correct.

[SundayInSalem]

Check Form 5405 in TurboTax. TurboTax Home & Biz Windows allows you to view forms in the Forms Mode.

1. Tap Forms in the upper right
2. Find Form 5405 in the left column (Forms in My Return) and tap to open
3. Check or adjust the info in the First Time Homebuyer Credit Repayment Smart Worksheet. When you say the ‘balance is paid in full’ I don’t know whether you mean the $500 payment or the remaining balance. Either way, you can adjust the numbers.
4. Tap Step-by-Step in the top right to return to the interview mode.

If you are still unable to e-file after making the change and verifying your return is correct, you can mail your amended return. That’s not a good idea now as IRS is still behind processing mail. Send anything by certified mail with proof of delivery. It may take six months or more for IRS to process your return.

Form 5405

[Ty232301]

Thanks for the additional information! When i originally filed in March 2022 (for tax year 2021) i paid the remaining balance due for the homebuyer credit. I believe what is happening is Turbo Tax is looking at the Fed database which shows $0 dollars as the balance but its still validating against the balance that is in my forms from March 2022, so it believes there is a discrepancy when there isn't.

[SundayInSalem]

You will probably have to file by mail.

If IRS database is showing $0 then a Form 5405 would not be required (because there is no balance due). You can also try deleting Form 5405 since you paid you entire balance with the original return and try filing that way.

[Ty232301]

that's a good idea, I'll try deleting that form and see if that works. I'll report back if it does, appreciate the help!

[Ty232301]

unfortunately that did not work, it simply increased my refund by deleting the form (since this is an amended return, turbotax is assuming I'm adjusting the homeowner credit). It appears to be a glitch in turbo tax that its trying to verify the balance with the IRS database, even though I'm not adjusting any of the figures for the homeowner credit when I'm simply amending something else in my returns. So this small thing is going to cost me potentially weeks of waiting by having to send my amended returns by mail, good times.....

[SundayInSalem]

Sorry to hear about that. IRS matches several things such as the first-time homebuyer balance against its database before accepting an e-filed return.

I suggest sending your amended return by certified mail with proof of delivery. IRS mail is still backed up by months.