Rejected because of the Home Buyer credit I received in 2008. I divorced but the home I received the credit for stopped being my main home on or before December 31, 2023

[correttamcmillan07]

There is a balance of $325 that can be taken out of my refund if the return is accepted. Any idea what I'm doing wrong?

[Opus 17]

Yes, you were supposed to file form 5405 with your 2023 tax return, declaring that you moved out of the home because you transferred it to a spouse in a divorce.  You would not be required to make any payment for 2023 or 2024, because that responsibility is transferred to the spouse who remained in the home.

The easy solution is to just tell Turbotax you are still living in the home, and allow the program to make the final payment.

The correct solution in your case is to file without a payment for 2024 (you will have to mail your return instead of e-filing).  Then prepare and file an amended 2023 return that reports you moved out and transferred responsibility for the credit to your spouse who remained in the home.  You should get a refund of the payment you made in 2023.  

On the other hand, if you DID report moving out on your 2023 tax return using form 5405, then the IRS credit database is wrong.  Just file by mail for 2024, there is no need to amend your 2023 return.