|S2-F1040-152||If Form 5405 is present in the return, then Schedule 2 (Form 1040), "FirstTimeHmByrRepaymentAmt" must be equal to the sum of all Form 5405, "FirstTimeHmByrRepaymentAmt".|
|S2-F1040-152||If Form 5405 is present in the return, then Schedule 2 (Form 1040), "FirstTimeHmByrRepaymentAmt" must be equal to the sum of all Form 5405, "FirstTimeHmByerRepaymentAmt".|
|S2-F1040-429||The e-File database indicates a First-Time Homebuyer Installment Payment is due for the Spouse SSN. Include an amount on Schedule 2 (Form 1040), "FirstTimeHmByerRepaymentAmt" and attach Form 5405 if required.|
The first-time homebuyer credit is a tax credit for individuals and couples who purchased a new home after April 8, 2008, and before May 1, 2010. There are several versions of the credit depending upon when the home was purchased:
- For homes purchased in 2008, the credit, with some exceptions, must be repaid and takes the form of a $7,500 interest-free loan.
The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 ($8,000 if you purchased your home in 2009 or early 2010) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $75,000 or more ($80,000 in 2009 or early 2010).
Steps to Enter Repayment amount to return:
1. Add Form 5405
2. Complete Part II – Repayment of the Credit
- Check the box that you physically received the credit in 2008 and are completing this section to make the annual repayment.
- Enter the amount of Credit the Taxpayer/Spouse received in the year they took the credit on line 4
- Enter the amount of credit that has been repaid since taking the credit on line 5
The Credit computation should automatically calculate on line 8 and the amount of credit to be repaid should come off the refund amount on the tree. This amount will carry to Schedule 2 Line 7b and ultimately to 1040 Line 23.
Once you have completed the form you will be able to have the customer resign and you can resubmit the return.
If the customer no longer has the home contact CTTS to complete the form.