@stephaniej620 wrote:
On the 2022 tax return the remaining balance for the credit was paid, it's specified on line 10 with Form 5405. I've answered the questions regarding the sell of the home and it says I do not owe for the credit, nor does the IRS website, however it is the reason my return is getting rejected.
Reject Code S2-F1040-147
You said above you sold the home in 2023 but now you say you sold in 2022 and you reported the sale on form 5405 and paid off the credit as part of your 2022 tax return? What year are we talking about?
I want to be clear what you are saying. Your 2022 tax return includes a form 5405. And the repayment amount from line 8 of form 5405 was copied to line 10 of Schedule 2 (Additional taxes). And the total of schedule 2 from line 21 was copied to form 1040 line 23? But when you look up your credit at the IRS web site it says you still owe $500?
How much did you pay in 2022 from form 5405?
The error message says that the IRS e-file validation database thinks you owe a payment. If you included form 5405 in 2022, and the IRS databases are not updated to reflect the payment and zero remaining balance, then you can't e-file this year. You will need to file by mail. You should also check your 2022 transcript to make sure the payment was recorded. You may need to call the Taxpayer Advocate's office to get this straightened out. There is nothing Turbotax can do for you.
https://www.irs.gov/individuals/get-transcript
https://www.irs.gov/taxpayer-advocate
On the other hand, if you are saying that your 2023 return (this year) includes form 5405 with repayment, because you sold your home in 2023, and the IRS is still rejecting, that is something that needs more investigation. The repayment (you say you owe $500) should show on line 8 of form 5405 and be carried over to line 10 of Schedule 2 and line 23 of form 1040. Are all these forms included when you print your tax return for review?
