First-Time Homebuyer Credit Repayment

Some individuals took advantage of legislation passed by congress which established a First-Time Homebuyer Credit for 2008, 2009, and 2010. For a summary of the repayment criteria and exceptions, refer to this IRS page.

For Homes Purchased in 2008

  • For 2008, the maximum credit was $7,500, and it has to be repaid at a minumum of $500/year over a period of 15 years beginning in TY2010. (Following a minimum payment schedule, this program should expire with TY2024 tax returns.)

    NOTE: If the home was purchased by a husband and wife, they are equally responsible for repaying the debt. If they file separate returns (married or divorced) they each must repay at least $250 per year.

    If the minimum payments have been paid every year, the amount repaid through TY2020 will be $5,500 total ($2,750 taxpayer, and $2,750 spouse).

    Go to Federal Section > Other Taxes > First-time Homebuyer Repayment to enter the repayment data for this tax year.

    If the home is sold prior to the credit being fully repaid, the unpaid balance must be fully repaid with that year's Federal tax return, using Form 5405 to calculate the repayment.

For Homes Purchased in 2009 or 2010

  • For 2009 or 2010, the maximum credit was $8,000, but the credit did not have to be repaid unless the home ceased to be the taxpayer's main residence within a three-year period following the purchase. That means as of TY2014, it is beyond the time when any repayment would be required for these credits.