Why do I need to upgrade for "first time home buyer credit". Never had to before

[Cynthiad66]

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.  You should easily be able to complete the Form 5405. The form is available in TurboTax Deluxe and higher.  The Free version of Turbotax does not have the form.

Here is some information on how to input the Form 5405.

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 tax bill)

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:

First Time Homebuyer Credit Account Look-up

You will need:

• Social Security number (or
  your IRS Individual Taxpayer
  Identification Number);
• Date of birth;
• Street address; and
• ZIP Code.

[Opus 17]

When did you sell or move out of the home where you got the credit?  If you moved out in 2020, you have to upgrade in order to file form 5405 and report the disposition of the home and repayment of the credit balance. If you are only making the annual repayment and you are staying in the home, you should not have to upgrade just to make the payment. 

[logandeams]

I bought the house in 2008 and been using turbotax since then. Never had to upgrade to do the “first time buyer credit”. Just clicked on the option for them to take $500 every year.

[logandeams]

I bought the house in 2008 and been using turbotax since then. Never had to upgrade to do the “first time buyer credit”. Just clicked on the option for them to take $500 every year.

[Cynthiad66]

The Free Edition of Turbotax will not allow you to claim the credit because the forms are not in that program.  However, we have the following:

You can use TurboTax Freedom edition. It has all of the forms in it. https://turbotax.intuit.com/taxfreedom/

IRS Free File Program delivered by