My return was rejected due to home buyer credit repayment.I no longer live at that address due to divorce

[Rachel_W]

If you transferred the home in 2018 to your ex-spouse due to divorce, by indicating this to the IRS on Form 5405, you will no longer be liable to pay back any of the First Time Home Buyer Credit:

Please follow these instructions to complete Section I of Form 5405: 

• Login to your TurboTax Account 
• Click "Take Me To My Return"
• Click "Federal" from the left side of your screen
• Click the "Deductions and Credits" tab at the top of your screen.
• Scroll down to "Your Home" and click "Revisit/Start" next to "Homebuyer Credit Repayment"
• Choose "Yes" this was still your main home on 1/1/2018 
• Enter Date of Purchase and click "Continue" and then "Continue" again
• Answer "No, my situation changed" and enter the date this was no longer your main home and click "the above does not apply" if applicable
• Choose "Transferred the house to ex-spouse due to divorce"
• Enter spouse's name and date of transfer

[Chooch300]

Hello, 

The above workflow does not work. Clicking "No, our situation changed (it's not our main home) requires a 2018 date. My wife and I are now renting the house that we used the first time homebuyer credit for, so we have not sold it, but we stopped using it as our main residence prior to 2018 (2013). Please advise. 

[Critter]

Oh my ... you have big troubles if you converted it to a rental back in 2013 !!! That was the year you were to report the change in use AND pay the remainder of the credit back in total.

So have you just been paying back the credit every tax year since 2013 ??? You may really need to seek local professional assistance to get the 2013 return amended especially if you have been paying back the credit every year since.