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Client files 1st time homebuyers credit. TP died in 2013. Spouse remarried in 2018. Getting efile error . How do I fill out 5405 to show repayment under new TP's ss#?

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Level 15
Level 15
Are you assigning the 5405 to the spouse (thats the SSN you want on it, right?)? I think you can do that.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 10

The surviving, remarried spouse has been repaying only half the credit, right?  (I thought these things went on for only 10 years, but apparently it was 15.)

Person who claimed the credit dies. 

If a person who claimed the credit dies, repayment of the remaining balance of the credit isn't required unless the credit was claimed on a joint return. If the credit was claimed on a joint return, then the surviving spouse is required to continue repaying his or her half of the credit (regardless of whether he or she was the purchaser) if none of the other exceptions apply.

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Thanks Bob.  They did file a joint return so I think the surviving spouse needs to repay.  (this was the first program where the repayment time covered 15 years).  She has repaid $500 each year since his death, not half.  I didn't do the math yet, but could she possibly be paid in full if $250 should have been forgiven for the deceased TP?

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Level 15
Level 15

Use the FTHBC LookUp tool and see what IRS shows for balance still due.

https://www.irs.gov/credits-deductions/individuals/first-time-homebuyer-credit-account-look-up


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 10

I think the deceased husband's half would be canceled at his death, so she should have been paying on only her half.  And that might mean she has paid in full, or maybe IRS wrote it off with the husband's EIP this year. (Just kidding.)  Let us know how that IRS research tool works -- does it show a balance due for the husband, also?