Question

I have a question about repayment of homebuyer credit. I sold my home before living in it for three years. If I had to move for my job, do I have to repay my first-time homebuyer credit using Form 5405?

Answer

Yes. You are responsible for repayment of homebuyer credit. Repay the credit on Form 5405 and attach it to your Form 1040.

The exceptions to repayment of homebuyer credit are for:

  • Government service employees — If the disposition is in connection with government orders
  • Death — If you claim the repayment of homebuyer credit on a joint return, the surviving spouse pays only his or her half of the remaining credit repayment amount.
  • Divorce — If you transfer your home to your former spouse as part of a divorce, he or she is responsible for the rest of the repayments.

To learn more, see Topic 611 at www.irs.gov.

Related Topics

Related Resources

Taxes Get Personal: What’s Your Filing Status?

Do you know what your tax filing status is? Learn how to determine and check your tax filing status with H&R Block.

Tax Myths—Busted! | H&R Block

When it comes to making everyday tax decisions, we find that there's a gap between what's true and what's rumored. Let's explore four common tax myths.

10 Ways Getting Married Affects Your Taxes in 2018

What happens to your taxes after marriage? Learn how marriage can lead to changes in tax filing and returns at H&R Block.

Filing for a Deceased Taxpayer

If you need help handling an estate, we're here to help. Learn how to file taxes for a deceased loved one with H&R Block.