The amount you put towards repayment of the first time homebuyers credit will be added to your tax bill. It will be taken out of any refund that may be due you, or will add to your balance due amount to pay via check with voucher (Form 1040 -V) or through IRS web pay services.
You have the option to repay as much of the credit as you'd like. So if you want to pay off the full amount, or pay off half, you can do that too. For example, if your credit was $7,500, you'd pay exactly $500 every year for the next 15 years, without any interest tacked on. You could, however, pay off the balance due.
To add a repayment of
the first time homebuyers credit follow these steps:
- Sign in to
your TurboTax account
- Click on Federal
Taxes tab
- Choose Deductions
& Credits
- Scroll down
to Your Home
- Click Start
to right of Homebuyer Credit Repayment.
-
Work through screens and watch for screen titled "Your Homebuyer Credit Repayment Summary"
- If you would like to pay an additional amount, click button to left of I'd like to repay more than the minimum amount due and enter amount in box (notice the Note:This amount will be added to your 2016 tax bill)
See screen shot below.
You may need to upgrade your TurboTax version. Form 5405 First-Time
Homebuyer Credit and Repayment of the Credit is available in TurboTax
Online Deluxe, Premier, and Self-Employed versions.
