The First-Time Homebuyer Credit was a temporary federal tax credit available to certain taxpayers who purchased a qualifying home between 2008 and 2010. Although the credit is no longer available, some taxpayers were required to repay all or a portion of the credit depending on when the home was purchased and whether it continued to be their main home.
Tax year 2024 was the last year Form 5405 was supported. Tax years 2025, 2026, and later do not support Form 5405 or First-Time Homebuyer Credit repayment reporting.
How Did the Credit Work?
The First-Time Homebuyer Credit:
- Applied to qualifying home purchases made after April 8, 2008.
- Reduced a taxpayer's tax liability dollar for dollar.
- Was generally refundable, meaning eligible taxpayers could receive the credit even if they owed little or no tax.
- Was claimed on Form 5405.
Repayment Rules for 2008 Home Purchases
If you purchased your home in 2008, the credit functioned like an interest-free loan and generally had to be repaid over 15 years.
For example, a taxpayer who claimed the maximum 2008 credit of $7,500 typically repaid $500 per year as an additional tax beginning with their 2010 tax return.
Repayment Rules for 2009 and 2010 Home Purchases
If you purchased your home in 2009 or 2010, you generally did not have to repay the credit as long as the home remained your main residence.
However, repayment could be required if the home ceased to be your main home during the 36-month period beginning on the purchase date. This could occur if the home was:
- Sold
- Foreclosed upon
- Converted to rental property
- Transferred to another owner
- No longer used as your primary residence
Credit for Long-Time Homeowners
Some long-time homeowners who purchased a replacement principal residence may have qualified for a credit of up to:
- $6,500 for most filing statuses
- $3,250 for Married Filing Separately filers
To qualify, the taxpayer generally must have owned and used the same principal residence as their main home for at least five consecutive years during the eight-year period ending on the purchase date of the replacement home.
Is the First-Time Homebuyer Credit Still Available?
No. The First-Time Homebuyer Credit expired and is no longer available for new home purchases.
In addition, tax year 2024 was the final year Form 5405 could be filed through the program. Tax years 2025, 2026, and later do not support Form 5405.
What If I Need Information About My Credit?
The IRS First-Time Homebuyer Credit Account Look-Up tool is no longer available.
If you need to determine:
- The original credit amount claimed
- The amount repaid on prior tax returns
- Any remaining balance
you'll need to rely on your own records, such as:
- Prior-year tax returns
- Copies of Form 5405 from previous years
- IRS notices or correspondence related to the credit
- Other tax documents showing prior repayments
These records can help you determine your credit history and any remaining repayment obligation.
Additional Information
Please review the resources below for additional information regarding the First-Time Homebuyer Credit: