First-Time Homebuyer Credit -This year we are married filing separately . The IRS rejected my return because my husband's return contained the repayment and not mine.

Forum|Forum|7 years ago
June 1, 2019
1 reply
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How do we post the $500 repayment if we are married filing separately. Should I post $250 and my husband post $250???

DawnC0

Level 12

Yes, you should both report half if filing separately. If he has already filed and claimed the full repayment, you will need to paper file or you can try to add $1 of repayment to your return and see if that will allow you to e-file.

Per Form 5405 instructions:

If you and your spouse claimed the credit on a joint return, each spouse is treated as having been allowed half of the credit for purposes of repaying the credit. Each of you must file a separate Form 5405 to notify the IRS that you disposed of the home or ceased to use it as your main home and figure the amount of the repayment.

https://www.irs.gov/individuals/first-time-homebuyer-credit-account-look-up