The IRS has developed an online tool to help people who have to repay their First-Time Homebuyer Credit. The IRS will no longer be mailing reminder notices to taxpayers who have to repay the credit but you can now use their online lookup tool on the IRS website to check your repayment obligation.
The following four tips will help you look up information on your First-Time Homebuyer Credit:
- Who needs to repay the credit? If you bought a home in 2008 and claimed the First-Time Homebuyer Credit, the credit is similar to a no-interest loan and must be repaid in 15 equal annual installments that began with your 2010 return. If you did not comply in 2010, you will have to file amended returns.
- If you bought your home after 2008 and claimed the First-Time Homebuyer Credit, and then sold the home, or stopped using it as your main home within the 36 month period beginning on the purchase date, may have to repay the entire credit. This includes situations where the home was destroyed, condemned, lost through foreclosure or converted to business or rental property. There are some exceptions.
- Information needed to access the tool: The First-Time Homebuyer Credit Tool will provide critical account information to help you report your repayment obligation on your tax return. To access the tool you will need: your Social Security number, date of birth and complete address. If you file a joint return, you’ll only be able to access your portion of the First-Time Homebuyer Credit account information.
- What the tool provides: The tool will show the original amount of the credit, annual repayment amounts, total amount paid and the total balance left to be paid. You will be able to print your account page to share with your tax preparer and keep for your records.
- How to repay the credit: To repay the First-Time Homebuyer Credit, add the amount you have to repay to any other tax you owe on your federal tax return. This could result in an additional tax owed or a reduced refund. To repay the credit, you report the repayment on line 59b on Form 1040, U.S. Individual Income Tax Return. If you make an installment payment, you do not need to attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, to your tax return. However, if you are repaying the credit because the home stopped being your main home, you must attach Form 5405.
You can access the First-Time Homebuyer Credit Lookup Tool, 24 hours a day, seven days a week, visit the IRS.gov website.
If you have any questions feel free to contact Steve Siesser at email@example.com