If your filing status was Married Filing Joint when you claimed the First-Time Homebuyer Credit, but you are now divorced or separated, please review the information below. The Line 3e instructions pertain to you if you are the spouse who transferred the home to your spouse or ex-spouse. The Line 4 instructions pertain to you if you are the spouse to whom the home was transferred by your spouse or ex-spouse.
Per IRS Instructions for Form 5405
, page 3:
Line 3e. Check the box on line 3e if you meet either of the following conditions.
- You transferred the home to your spouse.
- You and your spouse divorced and you transferred the home to your ex-spouse as part of the divorce settlement. Include the full name of your ex-spouse in the space provided.
If you claimed the credit on a joint return but your spouse died, enter one-half of the credit you claimed. The remaining half (that is, your spouse's half) doesn't have to be repaid. If you and your spouse claimed the credit and the home was later transferred to you by your spouse (or ex-spouse as part of a divorce settlement), enter the total credit claimed by both you and your spouse (or ex-spouse).
The steps below will take you to where you need to enter the information in your return:
- From within your TaxAct® return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
- Click Taxes in the middle of the screen to expand the category and then click Repayment of first-time homebuyer credit
- Click Yes to review the repayment information
- Click No to skip over the installment repayment section
- Click No to skip over the repayment worksheet
- Click Yes to review the repayment reporting section
- Follow the instructions below depending on your situation
If you are the spouse who transferred the home:
Enter the date the home ceased to be your main home, then continue through the Q&A until you reach the screen titled Homebuyer Credit - Repayment - Identify Situation
. Select The home was transferred to my spouse (or ex-spouse as part of a divorce settlement)
. On the following screen, you will need to enter your spouse or ex-spouse's name. You will then see a screen explaining that no repayment of the credit is necessary.If you are the spouse to whom the home was transferred:
Complete the entries on the screens with the total amounts claimed (and paid) in prior years by both spouses.If you are the surviving spouse:
Complete the entries on the screens as instructed. The amount calculated to be repaid will appear on Line 7b of IRS Schedule 2 (Form 1040), if applicable. 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.