If you claimed the First-Time Homebuyer Credit for a home purchased in 2008, the 2021 return is the twelfth year of the 15-year installment repayment of the credit. Any amount calculated to be repaid will be transferred by the TaxAct program to Line 7b of Schedule 2 (Form 1040) Additional Taxes. 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 Forms 5405 Repayment of the First-Time Homebuyer Credit will be produced (and printed with the return) if repaying the credit on a joint return.
To access repayment of first-time homebuyer credit in the TaxAct® program:
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.