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Deductions & credits
Here is an answer from Opus17 - Tax Champ
If you sold or otherwise moved out of the home where you got the credit in a previous year, you were supposed to report the disposal of the home on form 5405 in that year. The only time you can transfer the repayment to a new home is if the prior home was condemned or destroyed by fire, flood, etc. Then you have the option of transferring the 15 year payment schedule to a new home. In all other circumstances, you must close out the credit in the year the home stops being your main home.
If you sold with a gain or converted it to a rental, you owed immediate repayment of the remaining balance. If you sold at a loss, you owed no further repayments but it must be reported. If you transferred your share of ownership to a spouse in a divorce, you file the form to transfer responsibility for your share of the credit. Either way, you file form 5405 in the year the home stops being your main home and you make no payments after.
You will need to file an amended return for the year you moved out of the home and report that on form 5405. You can claim credit for payments you made through 2019. You may owe additional tax if you had a gain on the home. For 2020, you don't owe repayment but the IRS thinks you do so you will have to file by mail.
You will need to mail a paper return and include Form 5405.
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