First time homebuyer credit repayment question - confused about 2008 claim

The First-Time Homebuyer Credit from 2008 does require repayment, unlike later versions of the credit. Here's what might be happening in your situation: The 2008 credit (maximum $7,500) essentially functioned as an interest-free loan that had to be repaid over 15 years (about $500 per year). If you received it, repayment would have started in 2010 regardless of whether you still owned the home. The confusion might be that you didn't intentionally claim it, but either your tax preparer included it or it was automatically applied. When you look at your 2008 tax transcript, that September refund issue date coinciding with your home purchase and tax filing suggests you did receive the credit. The April 15 date is likely just referring to the tax year, not your actual loan date. The loan modification denial based on 2009 might be referring to your refinance date, not the original mortgage date, which would be separate from the homebuyer credit issue. Your best approach now is to request your complete tax transcript for 2008 from the IRS to confirm if Form 5405 (First-Time Homebuyer Credit) was included. If you did receive the credit, you'll need to continue the repayment schedule regardless of selling the home. If there's a mistake, you'll need documentation to prove you never received it.

After dealing with a similar nightmare situation, I finally found help using https://taxr.ai to sort through all my old tax documents and IRS notices. I also thought I never claimed the First-Time Homebuyer Credit, but the system helped me discover it was actually on my 2008 return (my accountant had filed it without explaining it clearly). The tool analyzed my tax transcripts and showed exactly where the credit appeared and how much I still owed. It saved me hours of digging through old paperwork and confusing IRS notices. They explained that the 2008 credit was actually a loan that required repayment regardless of whether you still owned the home, which is different from the later versions of the credit. What really helped was uploading all my documents from different years to see the full picture - they found connections between my returns that explained why the IRS kept rejecting my newer filings.

Just wanted to follow up that I decided to try https://taxr.ai after seeing it mentioned here. I was super confused about my tax situation with education credits, but after uploading my documents, I got a detailed explanation showing exactly where the errors were. The system identified that I had double-claimed an education credit across two years because my 1098-T was using different reporting methods. It showed me which specific forms needed correction and even highlighted the exact boxes that were causing the conflict. I was able to confidently file an amended return based on their analysis, and my issue was resolved without having to spend hours on hold with the IRS. For OP's homebuyer credit issue, this would be perfect since it can analyze forms across multiple years to find the inconsistencies.

If you need concrete answers from the IRS about this First-Time Homebuyer Credit issue, I'd strongly recommend using Claimyr (https://claimyr.com). I was in a similar situation with an unresolved tax credit issue that kept getting me nowhere when I tried calling the IRS directly. After months of frustration and hours on hold, I gave Claimyr a try after seeing their demo video (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in about 15 minutes when I had previously been unable to get through at all. The IRS agent was able to pull up my complete history and verify exactly what credits had been applied, when they were issued, and what repayments were still due. Having that direct conversation cleared everything up, and I was able to file the correct forms with the right information. For a complicated issue like yours spanning multiple years, speaking directly with someone who can access your full file is invaluable.

I need to admit I was wrong about Claimyr. After posting my skeptical comment, I was still desperate to resolve my own IRS issue (they claimed I owed $7,200 for an early 401k withdrawal I'd already paid taxes on), so I reluctantly tried the service. I was genuinely shocked when they called me and connected me to an actual IRS representative in about 20 minutes - after I'd previously spent multiple 2+ hour attempts getting disconnected. The IRS agent was able to pull up my complete file and confirm that there had been a processing error on their end. They fixed it while I was on the phone and removed the incorrect balance. The whole thing took about 30 minutes once I was connected. I still think the IRS system is broken if we need services like this, but I can't argue with the results. For complex issues like the first-time homebuyer credit that require speaking to someone who can see your complete tax history, this is probably the fastest way to get answers.

I dealt with this exact issue! Turned out I DID claim the 2008 First-Time Homebuyer Credit without realizing it. My tax preparer had included it thinking it was "free money" without explaining it was actually a 15-year loan. The thing about the 2008 version of this credit specifically is that you have to repay it regardless of whether you still own the home. The 2009-2010 version was different and didn't require repayment if you kept the home for 3 years. The biggest problem is when you sold in 2016, you were supposed to repay the entire remaining balance on that year's tax return. Since you didn't file for 2016, that outstanding balance is now blocking your ability to file current returns. Your best bet is to: 1. File your 2016 return ASAP with Form 5405 showing the repayment 2. Once that's processed, then file your 2018 and 2019 returns

I remember this credit! The original 2008 version was basically a $7,500 interest-free loan you had to pay back over 15 years. Lots of people got confused because later versions (2009-2010) turned into a true credit you didn't have to repay if you kept your home long enough. What sucks about your situation is that since you sold the home in 2016, the ENTIRE remaining balance would have become due on your 2016 taxes. That's probably why your 2018 and 2019 returns are getting rejected - there's an outstanding balance the IRS is looking for. The fact that BoA mentioned your loan was from 2009 is probably because of the refinance, which is a separate issue from the homebuyer credit. I suggest calling the IRS (I know, painful) and asking specifically about your Form 5405 from 2008 and what the remaining balance is. Then file your 2016 return with that repayment info.

This is a really complex situation, but it sounds like you definitely received the 2008 First-Time Homebuyer Credit even though you weren't aware of it. The key detail is that September 2008 refund showing up right around your home purchase - that's almost certainly the $7,500 credit. Here's what likely happened: Your tax preparer included Form 5405 on your 2008 return, which triggered the credit. The 2008 version was structured as an interest-free loan requiring $500 annual repayments starting in 2010. The critical issue is that when you sold in 2016, you should have repaid the entire remaining balance (roughly $4,000-4,500) on that year's tax return using Form 5405 Part II. Since you didn't file in 2016, that outstanding balance is now preventing your newer returns from being accepted. Your action plan should be: 1. Get your complete tax transcript for 2008 to confirm the exact credit amount 2. Calculate remaining balance (original amount minus any payments from 2010-2015) 3. File your 2016 return immediately with Form 5405 showing the full repayment 4. Once 2016 is processed, then file your 2018 and 2019 returns The Bank of America loan modification issue is separate - they were likely referring to your 2009 refinance date, not the original mortgage or the tax credit. This is definitely fixable, but you'll need to tackle that missing 2016 return first to clear the IRS block.