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?
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.
What are the tax filing requirements for college students who work and receive scholarships? Learn more from the tax experts at H&R Block.
Learn whether you can claim a family member who's not your child but who lives with you as a nondependent for EIC purposes with advice from H&R Block.
What is a closing disclosure? When you buy a house, you will receive a closing disclosure that can benefit you at tax time. Learn more at H&R Block.
The Saver’s Credit is a special tax break for some taxpayers saving for retirement. Learn more about the Retirement Savings Contribution Credit at H&R Block