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I had a return rejected today due to "the First Time homebuyer repayment must not be greater than the first time homebuyer credit amount in the e-file database". It gave a link to a direct online lookup tool but the link did not work. The repayment amount entered was $500 and is correct and the same amount entered in past years. How can I get the efile resolved?
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Use this link if the one they gave you didnt work...its right on the IRS website
https://www.irs.gov/credits-deductions/individuals/first-time-homebuyer-credit-account-look-up
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Thanks, Lisa. That did work but it's saying the client's payment is $250 when the client and his wife divorced several years ago and he kept the house. The proper paperwork was done at that time to advise IRS that client was retaining the house and responsible for the full amount. The $500 payment has gone through every year since until this year. Is my only option to get the efile through to change payment to $250 and let the ex-wife stuck for the other $250 when she hasn't co-owned the house for years?
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Are you filling in the 5405 with the info then making a larger payment, or are you just trying to put the 500 on Sch 2 ?
Ive had clients pay off the loan without disposing of the house and I fill out the top portion of the 5405 with a larger amount on the repayment line and its never been an issue.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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I am filling out the 5405 which has the $500 pre-populated as the repayment amount, but it rejects every time I efile it. I tried changed the amount to $250 which is the amount in the IRS database, just to get the file through so this poor guy gets his refund, but it rejects again because of the error message when I change the amount. I've just changed it yet another time by deleting the 5405 that was in the program, adding a new one without filling in any info but the $250, and now waiting to see if that also rejects. If it does, I give up. Hate to print and mail because IRS says they have no one looking at paper returns at all.
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Youre filling in the top of the 5405, in the Smart Worksheet? Split the original loan amount in half, then enter the payment made as show using the IRS lookup tool...it should automatically fill in the 250.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪