Amend Federal Return to Include Repayment of the First-Time Homebuyer Credit

If you claimed the First-Time Homebuyer Credit in a previous year and need to include a repayment amount on your current year return, use the following steps to enter the necessary information in TaxAct®:

  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 and then click Review next to Repayment of first-time homebuyer credit
  3. Click either Form 5405 if you disposed of the home or ceased using the home as your main home in 2019 or click Worksheet if you need to make the annual repayment and the home is still your main home
  4. The program will proceed with the interview questions for you to enter or review the appropriate information

If you already filed your return without this information and need to include it on an amended return, follow the steps above and then see Amending Your Federal Return for further instructions.

Additional Information

The credit is not available for homes purchased in 2019. If you have claimed the credit in any year, you can access your account information using the IRS Look-up Tool. This will provide you with your total credit amount, repayment amount, and other information. See the IRS First-Time Homebuyer Credit overview for more information, including repayment triggers.

TaxAct will automatically determine whether Form 5405 needs to be filed for your situation. If you are repaying the credit on your 2018 tax return, you are only required to file Form 5405 if:

  • You purchased your home in 2008 and;
    • You disposed of your home or you ceased using the home as your main home in 2019, or
    • You ceased using it as your main home in 2019.
  • You are repaying the credit because you purchased your home in 2011, the home was destroyed or you sold it through condemnation or under threat of condemnation in 2014, and the event occurred during the 36-month period that began on the purchase date. But see Exceptions, later.

In all other cases, you aren't required to file Form 5405. Instead, enter the repayment on Schedule 2 (Form 1040), line 7b, or Form 1040NR, line 59b, whichever applies. For example, you aren't required to file Form 5405 if you are making an installment payment of the credit you claimed for a home you purchased in 2008 and you owned it and used it as your main home during all of 2019. See the IRS Instructions for Form 5405 for more information.