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