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Level 1

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?

 
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Level 2

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.