AmyC
Expert Alumni

Deductions & credits

There are special rules when you quit using the house. You should no longer be paying off the loan and your answers don't make legal sense to the program.

 

If you dispose of the home or if you (and your spouse if married) stopped using it as your principal residence, you must attach a completed Form 5405 to your tax return that year.

 

It seems that you did not file the Form 5405 as required when you ceased using the house in 2021. You should amend that tax return and add the form 5405. You will pay the remaining balance with the amended return. Expect a letter from the IRS for interest and maybe penalties.

 

Another option is to lie to the program and tell it you quit using the house during 2022 and file the Form 5405 with this year's return. This may be your easiest choice for filing. You may still receive an IRS letter.

 

 

See 

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