If you need to enter your2008 first-time homebuyer credit into TurboTax you can do that by following the instructions below:
- Federal Taxes (Personal if using TurboTax Self Employed or Home and Business)
- Deductions & Credits
- You may need to click on Skip to see all tax breaks
- Scroll down to Your Home and click on Show More
- Homebuyer Credit Repayment
- Start or update
For the last 10 years I have had someone do my taxes. For the last 9 years I have been paying the first time home buyer credit back that we received in 2008, (starting in 2010) as I was supposed to. This year I am using Turbo Tax. We sold that house in 2014, it has never been a problem and now turbo tax will not take the $500 repayment and deletes the Form 5405. Can anyone help?
Generally when you sell your home and you taken a first time Homebuyer's credit in 2008, You need to pay the remaining balance on your first time Homebuyer's credit in the year you sold your house. For an example, if you sold your home in 2014, you would had to pay the remaining balance of $5000 in 2014.
My suggestion when you fill out your return this year, indicate you sold your house in 2019. Turbo Tax will calculate the remaining balance and you will need to pay the remaining balance of your first time Homebuyer's repayment. I suspect when your taxes were prepared in 2014, the preparer did not properly report that you sold your house in 2014. As a result, from 2014 until now, you have been repaying that $500 as if you still owned the house.
Please review this Turbo Tax link that verifies the information that I have just given you is correct.
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Sorry for the delayed response, I finally have had time to continue working on my return. Thank you so much for the reply, i think you are exactly right in what happened. I did exactly as you said, and Turbo Tax told me I do not owe any money on the credit, so now I really don't know what to do. I know I owe an additional $3000, but the Turbo Tax system will not let me enter it without it running its own program and verifying I owe it. Is there a way to just manually add it in without having to enter the sale of the home and costs etc. etc.?