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@Franchesca wrote:

Hello, I have a client who purchased a house in 2018. He us under a payment plan with the IRS. The instructions provided in form 5405 indicate that form 5405 is not required under a payment plan and that the repayment can be reported directly on schedule 2 line 7b. However, Proseries is generating the form? Is there a way to directly entry the first-time repayment homebuyer credit on schedule 2 without generating form 5405? Thank you. 

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You mean in 2008?

You may as well fill out the 5405 this year, that way any remaining payments due will carryover next year automatically.  If you dont have all the info to fill out the 5405, you can find it here

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

 

Aren't all First Time Homebuyers credits considered a payment plan ....which is the reason for F5405 ?  And why go to the trouble to eliminate the F5405 only to enter it on Schedule 2 ?????

And yes I know there was a FTHBC that did not have to be paid back

generally the 5405 only got included that first year, then just the payment shows up on the line the years following...you can just plug the payment into the 5405 in its worksheet area alone, I dont think the 5404 actually gets included....but moving forward, its nice to have that payment popup automatically each year, so you dont forget to include it, so if they put all the info in now, it will help next year by including it.

Thank you Lisa! You are the best!