File Form 5405 if you purchased your home in 2008 and either:
- You disposed on it in 2022 or
- You ceased using the home as your main home in 2022
If you purchased the home in 2008 and claimed the First Time Homebuyer Credit and still live in the home, continue to pay the credit until paid off. Form 5405 will not populate if you still own the home.
Where do I make the entry?
- Federal
- Other Taxes
- Repayment of First-Time Homebuyer Credit
How do I know how much the credit was for or how much is left to pay?
If you do not know the amount of the original credit or how much has already been paid, you can use the IRS First-Time Homebuyer Credit Account Look-up tool.
The tool will provide you with the:
- Balance of your First-Time Homebuyer Credit.
- Amount you paid back to date.
- Total amount of the credit you received.
- Annual installment repayment amount.
What if my spouse and I divorced?
The spouse who received the home is responsible for repaying the credit under the rules provided in the instructions. If your are divorced and the other spouse has the home, you will need to complete Form 5405 indicating the home is no longer your main home and that the home has been transferred to the ex-spouse.