Repayment of the First Time Homebuyer credit is through annual installments on your tax return and shows on Line 60b under Other Taxes on Form 1040. You must file Form 5405 with your tax return.
For example, if your credit was $7,500, you'd pay exactly $500 every year for 15 years, without any interest tacked on.
To add a repayment of the first time homebuyers credit follow these steps:
- Sign in to your TurboTax account
- Click on Federal Taxes tab
- Choose Deductions & Credits
- Scroll down to Your Home
- Click Start to right of Homebuyer Credit Repayment.
- Work through screens and watch for screen titled " Enter Your 2008 Homebuyer Credit" (see screen shot below)
- You will need to enter the total original credit amount received and what you have paid back so far (see below homebuyer credit look-up link below if you need this information).
- The next screen " Your Homebuyer Credit Repayment Summary" will tell you what your minimum repayment is for the current year and an option to pay additional if desired or required. (see screen shot below)
- If you would like to pay an additional amount, click button to left of I'd like to repay more than the minimum amount due and enter amount in box (notice the Note:This amount will be added to your 2016 tax bill)
You may need to upgrade your TurboTax version. Form 5405 First-Time Homebuyer Credit and Repayment of the Credit is available in TurboTax Online Deluxe, Premier, and Self-Employed versions.
If you do not have copies of your old returns and need help finding the amount of your original credit and/or the amount you've paid back so far, The IRS has a great First Time Homebuyer Credit Account Look-Up tool:
You will need:
- Social Security number (or
your IRS Individual Taxpayer
- Date of birth;
- Street address; and
- ZIP Code.
For more information and directions: IRS First Time Homebuyer Credit Account Look-up