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lmalcolm11
New Member

Return keeps getting rejected due to a missing first time homebuyer credit repayment. However, home was sold in a short sale in 2015. did not pay last year, due to loss?

 
3 Replies
PatriciaR
New Member

Return keeps getting rejected due to a missing first time homebuyer credit repayment. However, home was sold in a short sale in 2015. did not pay last year, due to loss?

If the home ceased to be your main home prior to 2017, you would have included Form 5405 in your tax return for the year it was disposed of/sold, etc. and you would have repaid your balance on that tax return or in some cases, the balance would have been waived. The reject message you are receiving is because the IRS has not properly updated its records and believes (based on their info) that Form 5405 with a payment is due for 2017. 

You can look up your account at this link to see if the IRS shows a balance due or if it has been waived:  https://www.irs.gov/individuals/first-time-homebuyer-credit-account-look-up

 To resolve this, you will need to paper file your return this year.  Attach a copy of your return for the year the property was sold, to show that you properly filed in that year.  Additionally, you will need to contact the IRS directly to have them correct their records so you don't encounter this same issue next year.

Jeremydpayne1981
New Member

Return keeps getting rejected due to a missing first time homebuyer credit repayment. However, home was sold in a short sale in 2015. did not pay last year, due to loss?

My return got rejected for the home buyer credit but I have never bought a house or claimed a credit for it

JohnW152
Expert Alumni

Return keeps getting rejected due to a missing first time homebuyer credit repayment. However, home was sold in a short sale in 2015. did not pay last year, due to loss?

If you’re unable to correct this error and the reject continues to generate, you won’t be able to e-file, and you’ll have to print and mail your return.

You’ve probably received the IRS’ reject code IND-147.  

This code is telling you that the IRS database shows that an installment payment is due from you for the First Time Homebuyer Credit.

This credit was claimed by first-time homebuyers for qualifying homes purchased between April 9, 2008, and December 31, 2008, and the IRS’ database apparently has information that you claimed the credit and need to repay a portion of it.

Since you say you never received the credit, see the TurboTax Help article What is E-file reject code IND-147? for guidance.

Also see the IRS’ Topic No. 611 Repayment of the First-Time Homebuyer Credit for more information about the credit.

@Jeremydpayne1981
 

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