1657960
You'll need to sign in or create an account to connect with an expert.
You don't owe repayment, nor did you owe in 2017 or 2018.
When you were foreclosed in 2016, you were required to file form 5405 to close out the credit. Depending on the circumstances, you would owe immediate repayment of the remaining balance, or no payment, or something in between. From then on, you owe nothing.
(If you were foreclosed you probably owe nothing but you have to do the math. You might owe if you had a capital gain. For example, if you bought at $100,000 in 2008, refinanced for $200,000 in 2014, and were foreclosed in 2016 and the bank got $150,000 at the foreclosure sale, you have a $50,000 gain and owe full repayment.)
You need to file an amended return for 2016 that includes form 5405 and calculates the amount of repayment, if any. If you prepare form 5405 and show that you owe nothing, you can probably file the form by itself.
Then you owed nothing further for 2017, 2018 and 2019. For 2017, it is too late to file an amended return to get your $500 back. But you can file an amended return for your 2018 return to get that $500 back, and you don't need to make a payment for 2019. But because the IRS thinks you owe, you are blocked from e-filing, so you will need to print your return and file by mail.
If you do owe a repayment due to a gain on the foreclosure, you can include the $500 payments you made in 2016, 2017 and 2018 as "payments made so far" so you get credit for them.
Turbotax no longer sells or supports the 2016 program, you will need to do the amended return by hand or find a professional preparer to help you.
I fully agree ... RUN to a local tax pro to get this error fixed correctly ... you cannot fix it yourself. AND for the 2019 return go back and say you did not have the credit ... sadly this will keep you from efiling ... you will have to MAIL in the 2019 return. And expect issues with it's processing until you get the 2016 return corrected ... adding an explanation to the 2019 return about the missing 5405 & the fact the 2016 has been mailed would be wise ... again RUN do not walk do not pass GO.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
toddcd
New Member
rmayvdizon
New Member
sexychocolate1970
New Member
whitleyb34
New Member
mekermay79
New Member