If you received a message about the First Time Homebuyer Credit, it means that TurboTax has performed a check on the IRS database, and the software was told that there is a payment due for the Primary SSN on the return.
The first time homebuyer credit made it easier to pay your taxes by lowering your amount due when you buy a house. It's not a gift, like many other credits and deductions. It can be that you don't remember or didn't realize that you had taken this credit back in 2008, but the IRS rejected the 2020 return because of it.
If you bought your home and qualified for the homebuyer credit in 2008, it must be repaid as an additional tax on your federal tax return at the rate of 6 2/3%, or 1/15 of your credit amount. The annual repayments would be $500 per year if you received the maximum $7,500 credit.
Here is a TurboTax article about the first time homebuyer credit.
The IRS has a direct online lookup tool to view the First Time Homebuyer Information. Access the lookup tool and make appropriate changes. After you've made the changes, re-submit your return electronically.
If the reject continues, you'll be unable to electronically file and will need to print and mail this return.
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