lparker1214
New Member

I need help with homebuyers part on taxes

when i added first time homebuyers to my returns it keep going to no i didnt get this credit in 2008, but i did how do i change it
Opus 17
Level 15

Business & farm

What year did you get the credit, and are you still living in the home you bought with the credit?
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
lparker1214
New Member

Business & farm

2008 i am not living in the home havent since 2011
Opus 17
Level 15

Business & farm

If you stopped living in the home in 2011, you were supposed to file a form 5405 on your 2011 tax return saying you moved out.  Your credit balance would have been immediately due in full, or forgiven, or a partial payment was owed, depending on the circumstances.  That would have ended your responsibility for repayment and you owe nothing after that.  

Your problem now is a) reporting the disposal of the home in 2011 and repaying the correct amount that was owed, if anything, and b) getting refunds for the payments you did not owe in 2012, 2013, 2014 and 2015.  It is too late for 2012 so that money is gone, but you can amend 2013, 2014 and 2015 to get refunds of your payment (a 2013 amended return must be mailed by April 18, 2017, so don't dawdle).

Turbotax is no longer supported for 2011 so you will probably need to see a tax advisor to amend your 2011 return and calculate the amount owed.  You can amend 2013, 2014 and 2015 using software downloaded from turbotax, or ask the advisor to do that for you too.

For 2016, you owe no repayment. But the IRS thinks you do, so they will probably reject your return for not including a payment.  In that case, print your return and mail it in without the payment.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

McPherson1906
New Member

Business & farm

Good Afternoon,

I filed through the app, and bit my state and Fed were rejected for that same reason. Do I need to do that as well? We have been out of the home (foreclosed) since 2017.

AnnetteB6
Expert Alumni

Business & farm

Yes, you need to amend your 2017 return to show that you no longer live in the home for which you received the 2008 homebuyer credit.  Then you may also need to amend 2018 to correct the homebuyer credit repayment.  

 

To overcome the rejected 2019 return you must file by mail because the IRS system is still showing that you owe a repayment of the credit.  The only other option would be to indicate that you are still using the home in 2019, repay the credit amount, and then amend the 2019 return afterwards.  

 

Here is a TurboTax article that will help you get started amending your returns: 

 

How to amend (change or correct) a return you have already filed

 

 

 

@McPherson1906

 

 

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Opus 17
Level 15

Business & farm


@McPherson1906 wrote:

Good Afternoon,

I filed through the app, and bit my state and Fed were rejected for that same reason. Do I need to do that as well? We have been out of the home (foreclosed) since 2017.


You must amend your return for 2017 to include form 5405 and report the foreclosure.  You may owe nothing, or you may owe a repayment.  (For example, if you bought in 2008 for $100,000, and you refinanced in 2015 for $150,000, and then were foreclosed in 2017 and the bank sold the home for $120,000, you have a $20,000 gain and owe full repayment of the credit balance.  The extra $50K you took out early means you need to pay back the credit, even if you spent the money on something else.)

 

If you foreclosed at a a loss, you owe nothing, and might even get the $500 back.  You can also amend for 2018 to get the $500 back from that year. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*