Please use this article as a guideline to complete Form 5405, page 2 correctly. Incorrect filed forms may result in an IRS Reject Code.
Where do I enter the First-time Homebuyer Credit repayment information?
To access the menu to repay your First-time Homebuyer Credit, go into the
- Federal Section
- Other Taxes
- First-time Homebuyer Repayment (Form 5405). Fill out all applicable information regarding your specific type of repayment.
- Indicate which taxpayer the form is for (each spouse needs to complete a form)
- Did the home stop being your primary residence during the current year? If the home was sold, foreclosed on, turned into a rental home, destroyed or you no longer live in the home for any other reason, answer yes. The entire amount of the credit repayment will be calculated on the return. If you still live in the home, answer no.
How to make an installment payment
To report this installment payment, you will enter the total amount you received as a credit in the Repayment of Credit section. Enter the total of all payments made on previous tax returns. Select "Continue" to save your information and we will automatically calculate the amount of the repayment for you. If you would like to pay an additional amount, enter the amount in the last entry box.
How to report a disposition or change in use of the main home for which the credit was claimed
If the home ceased to be your main home in 2020, enter the date you disposed of the home.
- If the home ceased to be your main home due to military orders to serve on qualified official extended duty, check the box
- If you did not dispose of the home due to military orders, indicate the method used to dispose of the home (sale, converted to rental, transferred ownership, home destroyed, etc.)
Form 5405 is only required if the home ceased to be your main home. Otherwise, the payment will be entered directly onto Schedule 2 of your tax return.
If you are unsure of the original credit or the amount previously repaid, visit the First Time Homebuyer Credit Account Look-up on the IRS website.