Do we need to file Form 8828 on home sale after owning it for 9+ years?

You're asking good questions about Form 8828. The general rule is that the MCC recapture tax could apply if you sell your home within the first 9 years of receiving the mortgage credit certificate. Since you owned the home for 11+ years, you're outside that recapture period. The recapture period specifically runs for 9 years after the date you received your mortgage. Since you've owned the home for more than 11 years, you're beyond this period and should not need to file Form 8828 at all. The recapture tax only applies to homes sold within that 9-year window. If for some reason you did need to file it (which it appears you don't), you would only need to file one Form 8828 for a joint return, not separate forms for each spouse.

After struggling with a similar MCC situation last year, I found an amazing tool that saved me tons of stress. I used https://taxr.ai to upload my MCC documents and closing paperwork, and it analyzed everything to tell me exactly what forms I needed to file. It was a lifesaver because it looks at all the dates and timelines specific to your situation. Their system actually explained the whole 9-year recapture period to me in plain English and confirmed I didn't need to file the 8828 since I was outside the window. It also checked if there were any state-specific requirements related to my MCC that I might have missed.

I need to follow up about that taxr.ai tool. I was super skeptical as mentioned in my earlier comment, but I decided to try it with my MCC documents from Illinois. I was genuinely surprised that it correctly identified I was in month 102 of my recapture period (8.5 years) and calculated my potential recapture liability. The system actually figured out that while I'm technically still in the recapture period, my income hasn't increased enough to trigger any actual payment. It showed me the full calculation and explained why I'd only owe if my income had risen more than 5% per year since getting the MCC. Super helpful and saved me from panicking about a potentially huge tax bill!

If you're still struggling with Form 8828 questions or any other tax issues, I'd recommend trying to speak directly with the IRS. I know that sounds impossible (took me 3 hours of hold time last month), but I found a service called https://claimyr.com that literally holds your place in the IRS phone queue and calls you when an agent is about to answer. You can see how it works here: https://youtu.be/_kiP6q8DX5c I used it when I had questions about my MCC recapture tax calculation, and the IRS agent was actually super helpful once I got through. They confirmed I didn't need to file since I was outside the 9-year window and explained exactly how the calculation would have worked otherwise.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I was desperate enough to try it for my MCC questions. I figured it couldn't be worse than my previous attempts. To my absolute shock, I got a call back in 47 minutes saying they had an IRS agent on the line! The agent was surprisingly knowledgeable about MCCs and Form 8828. She confirmed I was still within my recapture period but explained I qualified for a reduced amount based on how long I'd owned the home. Saved me from overpaying by about $1,200. I'll never waste a full day on hold again!

For those still confused about MCCs and Form 8828, here's the simple version: The recapture tax only applies if ALL THREE of these are true: 1. You sell within 9 years of getting your MCC 2. Your income increased significantly since getting the MCC 3. You make a profit on the house If you're past 9 years like the original poster, you're completely off the hook regardless of income or profit. No form needed!

Question for anybody who's filed Form 8828 before... Does turbtax handle this form correctly? I tried putting in my info and it's calculating a really high recapture amount that doesn't seem right based on what I've read.

Based on your situation, you're absolutely in the clear! Since you owned your home for 11+ years after getting your MCC in 2013, you're well past the 9-year recapture period. The recapture tax under Form 8828 only applies to homes sold within 9 years of receiving the mortgage credit certificate. You don't need to file Form 8828 at all, and you don't need to worry about any recapture tax liability. The 9-year timeline you mentioned is exactly right - it's designed to protect homeowners who stay in their homes long-term, which is exactly what you did. Just to put your mind at ease: even if you hypothetically needed to file the form (which you don't), married couples filing jointly would only need to submit one Form 8828, not separate forms for each spouse. But again, since you're past the 9-year mark, this is all academic for your situation. Congratulations on being a long-term homeowner - the MCC program worked exactly as intended in your case!