Form 5405 - Repayment Needs to Be Removed on Return
1

If your return is reflecting a repayment of the First-Time Homebuyer Credit in error (i.e. due to being imported from a prior year return or having previously been entered in error), you can remove that from your return.

To remove the credit repayment:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Taxes in the Federal Quick Q&A Topics menu to expand, then click Repayment of first-time homebuyer credit.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled Repayment of First-Time Homebuyer Credit, click Worksheet.
  5. On the screen titled First-Time Homebuyer Credit Repayment Worksheet, click Edit to open the form already created.
  6. On the screen titled Homebuyer Credit Repayment - Information, enter a zero (0) in both fields on this screen, then click Continue.
  7. On the screen titled Homebuyer Credit Repayment - Minimum, clear the payment amount or leave it blank, then click Continue.