How do I enter first time home buyers repayment

[jbeasley2 · Accepted solution]

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

https://ttlc.intuit.com/replies/3301433

[swelsch]

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/how-do-i-enter-first-time-home-b...

THis should get you the information you need.

[Kyndira]

We got the credit in 2011, we were the exception because we were military and overseas during 2008 until feb 2011, so we bought in april 2011, and barely made that extension and received the credit.

It just now shows up as a repayment on the taxes...bit late ifnyou ask me but ok, and if we type in the purchase date turbo tax wont accept it because it wasnt 2008....come on we had this home since 2011 and havent repayed anything yet 😶 we were completely within the deadline on our purchase so please update it so it accept dates like ours as we qualified due to being overseas military.

[crisitna_gallagher]

I do this and select, Yes, but the home I received the credit for stopped being my main home on or before December 31, 2021as this is the case but when I submit it does not appear to save and when I go back it shows No, I never got this credit. I checked IRS website provided and it says I should be paying $250 and to add on 1040 schedule 2 but I cannot figure out ho to do this step. 

[BrittanyS]

 It would be helpful to have a TurboTax token.  The token provides a sanitized version of your return.  We will be able to see the numbers but not any personal information such as your name, SSN, or address.  

If you would like to do this, here are the instructions: 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

Then select Tools below Tax Tools. 

A window will pop up which says Tools Center.  

On this screen, select Share my file with Agent. 

You will see a message explaining what the diagnostic copy is.  Click okay through this screen, and you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on your screen and select Online. 

Scroll down and select Send tax file to Agent. 

You will see a message explaining what the diagnostic copy is.  Click send through this screen, and you will get a Token number. 

Reply to this thread with your Token number. 

We will then be able to see precisely what you are seeing, and we can determine what exactly is going on in your return and provide you with a resolution.

[crisitna_gallagher]

The token number is: 1137735 Thank you for the time and help!

[BrittanyS]

Thank you for the token. Can you clarify if you entered, you did not use the home as your primary home on your 2021 return?  If so, the form is correct, and you would not need to do anything additional because the repayment would have been placed on your 2021 return.  Form 5405 would need to be deleted as TurboTax instructs.  If you quit using the home in 2022 and not 2021, you will follow these steps:

1. Select Yes, and the home I received the credit for was still my main home on January 1, 2022
2. Enter the purchase date
3. Click Continue
4. Select No, my situation changed (it's not my main home)
5. Enter the date you stopped using as your main home 
6. Select The above does not apply
7. Finish the remainder of the questions

@crisitna_gallagher 

[crisitna_gallagher]

I did not use this home as primary in 2021. When I tried to submit I still get rejection though. Here is the info on the rejection: Reject Code S2-F1040-147

The e-File database indicates a First Time Homebuyer Installment Payment is due for the Primary SSN. Include amount on Schedule 2 (Form 1040), 'FirstTimeHmByrRepaymentAmt' and attach Form 5405 if required.

IRS database indicates that an installment payment is due for the First Time Homebuyer Installment Payment. This payment amount should be included on your return. The IRS has provided a direct online lookup tool to view the First Time Homebuyer Information. To access this lookup tool, copy and paste the following URL link into your browser window. (link here for IRS) If you agree that the IRS information is correct, make the appropriate changes in your return, and re-submit the return for electronic filing. If you feel that the information is inaccurate, contact the IRS for clarification . This return cannot be electronically filed unless this discrepancy is resolved. If you wish, you may print this return and file by mail.

When I go to the IRS website it shows I have been making installment payments and there is 250 due for this year. I then followed the instructions on turbo tax:

Reject code IND-147 means the IRS database indicates an installment payment is due for the First Time Homebuyer Installment Payment. This payment amount should be included on your return. 

To add this payment to your tax return: 

1. Sign into your TurboTax account
2. Open or continue your return
3. Search for homebuyer credit in the search bar
4. Select the Jump to link in the search results
5. Then, answer Yes, enter the date your home was purchased, and follow the onscreen instructions. We'll calculate the tax for you
6. Then, re-submit your e-file return

If you believe you don't owe the tax, the IRS has a direct online lookup tool to view the First Time Homebuyer Information. Use the tool to check your status and make appropriate changes. After you've made the changes, re-submit your return electronically.

Note: If the reject continues, you'll be unable to electronically file and will need to print and mail this return.

I then am taken to page where is asks:

Did you get the homebuyer credit in 2008?

Yes, and the home I received the credit for was still my main home on January 1, 2022   Yes, but the home I received the credit for stopped being my main home on or before December 31, 2021   No, I never got this credit

I select option 2,

Yes, but the home I received the credit for stopped being my main home on or before December 31, 2021 and click continue. When I do this is just takes me back to the overview screen of tax breaks. When I go back to the page it shows as I clicked No, I never got this credit even though I did not select that option.

Can you please help - I am very worried now as we are past file deadline date. 

[AmyC]

There are special rules when you quit using the house. You should no longer be paying off the loan and your answers don't make legal sense to the program.

If you dispose of the home or if you (and your spouse if married) stopped using it as your principal residence, you must attach a completed Form 5405 to your tax return that year.

It seems that you did not file the Form 5405 as required when you ceased using the house in 2021. You should amend that tax return and add the form 5405. You will pay the remaining balance with the amended return. Expect a letter from the IRS for interest and maybe penalties.

Another option is to lie to the program and tell it you quit using the house during 2022 and file the Form 5405 with this year's return. This may be your easiest choice for filing. You may still receive an IRS letter.

See 

• Topic No. 611, Repayment of the First-Time Homebuyer 
• Instructions for Form 5405
• how to file an amended return.

@christina_gallagher

[crisitna_gallagher]

When I look up the information on the IRS website it shows this when I pull up my information: 

Annual Re-payment Amount

The FTHBC for homes purchased after April 8, 2008, and before January 1, 2009, operates as an interest-free loan that taxpayers must repay over 15 years, beginning with the 2010 Federal Income Tax Return (the second year after the taxpayer purchased the residence). The re-payment amount for each year is 6 2/3 percent of the amount of the credit (if the taxpayer took the maximum credit of $7,500.00, dividing that amount by 15 equals a minimum payment each year of $500.00). Taxpayers must report the re-payment amount as an additional tax by including the amount on line 60b of the Form 1040 Schedule 4. If the taxpayer does not report the required re-payment on Form 1040, then the Service will assess additional tax using math error procedures.

Is there a way to report the re-payment amount as an additional tax by including the amount on line 60b of the Form 1040 Schedule 4 this on my return using this program?

Thank you 

[DoninGA]

@crisitna_gallagher You are reading an old IRS explanation.  There is not a Schedule 4 anymore.  The repayment amount paid is entered on Schedule 2 Line 10.

A Form 5405 is used to report the repayment.

Using the TurboTax online editions -

Click on Federal on the left side of the online program screen

Click on Deductions & Credits

Under Your Home

On 2008 Homebuyer Credit Repayment, click on start

[Critter-3]

@crisitna_gallagher 

If you stopped using the home in 2021  then the final form 5405 should have been filed on the 2021 tax return ... you will have no form 5405 on the 2022 return which is why when you say you stopped using the home in 2021 the program kicks you out of this unneeded section.

So if you did stop using the home in 2021 like you indicate then you have to amend the 2021 return to properly report that on the 2021 form 5405  and repay the rest of the outstanding balance of the loan on the 2021 return.   The suggestion to "fudge" and say you stopped using it in 2022 (instead of amending the 2021 return) and finish paying the loan off on the 2022 form 5405 can be done and since this was an interest free loan the IRS will probably never catch this oversight.   But one thing is clear ... since you no longer use the property as your personal residence (for any reason) you must repay the balance of the loan immediately (that was in the rules you agreed to when you first got the credit)  ... you do not get to keep repaying it over the rest of the 15 year loan period.