first time homebuyer credit repay MFS

[Trnr395]

I have a client that got married last year.  She is filing a married filing separate return.  The husband received the first time homebuyer credit that he repays back $500 per year.  When I file her return it gets rejected based on no form 5405.  When her husband files his return using married filing separate he will include it on his return.  Why would this get rejected she isn't the one that received the credit in the first place?

 

Thanks

 

Brad

[Cathy]

More than likely, the return was rejected due to her husband's name and SS# listed on her return. Has the husband filed his return yet? If not, your client's return may be accepted once he files. Or you can go ahead and paper file with an explanation on the form attached explaining why the return was not e-filed. Or, you might try attaching 5405 to her return and try again. Don't have a copy of the 5405 handy, but there might be a way you can indicate your client never received a homebuyer's tax credit.

[Jack from Ohio]

This is a known issue with the IRS.  ESTIMATED time of fixing it is March 23.  Paper file it and be done.