MFS and Repayment of the First time Home buyer

[athaureaux6]

Hi online community, 

How the repayment of the First time home buyer credit is treated in Proseries. Taxpayers saved 2000 filing separate (both were high earners with a lot of medical deductions) but they filed separate for the first time and I am receiving a rejection from both taxpayers based on the repayment of the 500 for the First time home buyer credit. I am assuming but I am not sure that everyone would include 250 dollars in the corresponding form. (that is what I am planning to do) They came to me for the first time and I did not know that). 

I prefer to post the question here because I trust the panel here more than anybody. 

Thank you everyone and have a great day 

[rcooley25]

I am not saying you did anything wrong filing separate returns so please don't take it that way.

But I would love to see those two tax returns side by side to see how you saved them $2000.00 on their returns by filing separate returns.

[sjrcpa]

If one or both of them get to claim medical expense itemized deductions, I can see how it could be $2,000.

[abctax55]

Complete *S.W.A.G.....  put it all on HIS return, as it may be tagged to his SSN?

As it isn't a divorce situation (so I assume they get along) it might work.

[rcooley25]

I suppose you are most likely right but it has never worked for me so I would love to see the returns side by side to see how it was done.

[Just-Lisa-Now- · Accepted solution]

Id check the FTHBC look up tool does it split it out per person?

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

[athaureaux6]

If you put two high income together, the 7.5 % of the Adjusted Gross Income is too much. It does not allow the medical deduction to kick in. Simple as that. It is one of the few exceptions where MFS make sense. 

[athaureaux6]

One more time, thank you Lisa

The link contains a FT Home credit look up that is very helpful. Taxpayers did not remember who got the credit back in the day and the look up stated everything I needed. You might not realize but I have learned a lot from you and the top-solvers through the years and for that Thank you very much. Have a great day and I hope all of you stay with us until we retire. Take care and God bless you.