Form 5405 - Repayment of 2008 Credit

If you claimed the First-Time Homebuyer Credit for a home purchased in 2008, the 2019 return is the tenth year of the 15-year installment repayment of the credit.

Any amount calculated to be repaid will appear on Line 7b of IRS Schedule 2 (Form 1040). This will either reduce the refund on the return (the refund may become an amount due, depending on the repayment amount) or increase the amount due.

If the credit was originally claimed on a joint return, each spouse is treated as having been allowed half of the credit for purposes of repaying the credit. Thus, two Form 5405 will be produced (and printed with the return) if repaying the credit on a joint return.

To enter the repayment into the TaxAct® program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then select Federal.
  2. Click Taxes in the Federal Quick Q&A Topics menu to expand the category and then click Repayment of First-Time Homebuyer Credit.
  3. Choose to enter information on Form 5405 or the Repayment Worksheet. The program will proceed with the interview questions for you to enter or review the appropriate information.