@stephaniej620 wrote:
I'm having the same issue, it is related to the 2008 Homebuyer Credit. When I look it up on the IRS site, it says I owe -$500 and I don't know how to proceed. My return keeps getting rejected.
If you moved out of the home in a year earlier than 2023 (Stopped using it as your main home), you were supposed to report the move out on form 5405 in that year. You owed a full or partial repayment at that time, and owed nothing further in any future tax year. (Or if you moved out due to divorce, your responsibility might have been transferred to the other spouse.) If you tell Turbotax "yes I got the credit" and "I moved out in an earlier year" turbotax will tell you that you don't owe a repayment this year, but then the IRS may reject the return if they think you do owe a repayment (because you failed to file in the year you actually did move out.)
The correct thing is to file by mail this year without the payment, then file an amended return for the year you did move out, that includes form 5405 to calculate whatever payment was due at the time.
A workaround would be to say that you still live in the home and did not move out. But this might result in making a payment you don't owe, depending on how, when and why you stopped using the home as your main home.
