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#?

Forum|Forum|6 years ago
May 23, 2020
5 replies
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Just-Lisa-Now-

Intuit Community Champion

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

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

BobKamman

Level 15

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.

R

robinkurtz-taxAuthor

Level 2

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?

Just-Lisa-Now-

Intuit Community Champion

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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