Can someone please help me file my 2023 Federal taxes. I've been getting rejected since the beginning of the year because of the first time homebuyers repayment.

[jules218-]

I purchased my house in 2008. I sold my house in August 2021. But it's telling me I need to put in a date in 2023 that I was still living there, in order to proceed.  But I doubt want to lie.

[tagteam]

See https://www.irs.gov/taxtopics/tc611

Acceleration of repayment. In general, in the case of a home purchased in 2008 for which you received the first-time homebuyer credit, if you dispose of it, or you (and your spouse if married) stop using it as a principal residence in any taxable year during a 15-year repayment period, the credit repayment is accelerated. Similarly, in the case of a home purchased after 2008 for which you received the credit, if you dispose of it or you (and your spouse if married) stop using it as a principal residence within 36 months from the purchase date, the credit repayment is accelerated.

If you're subject to an accelerated credit repayment, you must increase your federal income tax for the year of disposition or cessation of use by the amount of any excess of the credit allowed over the sum of the additional taxes paid under the credit repayment requirement. However, there are exceptions.

[Opus 17]

If you moved out in 2021, you were supposed to report that fact on your 2021 return, using form 5405.  That would calculate your gain or loss on the sale, and if you have a gain, then you immediately repay all remaining credit balance.  After that, you make no further repayment, so you did not owe a $500 repayment in 2022 and you don't owe one in 2023.

Either you did not report the sale correctly, or the IRS did not record it correctly.

For 2023, you should file by mail without making a $500 payment.

Then, go back and look at your 2021 return.  If you did include form 5405 reporting the sale, contact the taxpayer advocate to get your records corrected.

https://www.taxpayeradvocate.irs.gov/

If you did not include form 5405 to report the sale, you need to file an amended 2021 return that shows the sale and calculates any repayment.  

Unfortunately, even if you report the sale of your home as a capital gain on schedule D, that does not automatically trigger form 5405, you have to go into the FTHB section and run that interview separately.