Why am i paying the full amount I owe on First Time Homebuyer credit

[ruth-h]

I bought a house in 2008 and got a First Time Homebuyer credit of $7500. I've paid back $3000 and it looks like I'm paying back the rest of the loan this year. Why?

[HelenaC · Accepted solution]

If this is still your main home, make sure you entered that you paid $3,000 on the Enter Your 2008 Homebuyer Credit screen. See the screenshots below.

If this is no longer your main home, click on What would cause me to have to repay the first-time homebuyer credit ahead of schedule?

If you took advantage of the 2008 First-Time Homebuyer Credit (which was actually an interest-free loan), you'll repay it in equal portions for 15 years, starting with your 2010 tax return.

Your repayment is an additional tax that will either lower your refund or increase your tax bill through tax year 2025. If you got the full $7500 credit, the additional tax is $500 per year; otherwise, if you got less than that, your repayment is 6.66% of the total loan amount.

To get to this section in TurboTax, search for homebuyer credit in your TurboTax program and then click the "Jump to" link in the search results.

Then, answer yes, enter the date your home was purchased, and follow the on-screen instructions. We'll calculate the tax and handle the rest.

Related information:

• What would cause me to have to repay the first-time homebuyer credit ahead of schedule?
• For the first-time homebuyer credit, how would the IRS know if I sold the home?
• What is Form 5405?