Reject S2-F1040-152 occurs when Form 5405 has been included in the return, but should not have been.
If the first-time homebuyer credit was claimed by a taxpayer for a home that was purchased in 2008, repayment of the credit began with the 2010 tax return and continues for 15 years or when the house is sold, whichever is earlier.
Form 5405 only needs to be included in the return if the taxpayer disposed of (sold) the house, or due to other circumstances, the house is no longer the taxpayer's main home. The repayment amount should be entered without filling out Form 5405. The IRS will not process the return electronically if Form 5405 is present in the return and should not be.
The amount that the IRS believes the taxpayer owes as installment payment can found at the IRS website for First Time Homebuyer Credit Lookup.
Desktop - How to Correct Reject S2-F1040-152
To correct reject S2-F1040-152, from the main menu of the tax return (Form 1040), select:
- Other Taxes
- First-Time Homebuyer Credit Repayment
- Complete Form 5405 - Select Taxpayer or spouse as applicable
- Remove Form 5405
- 2008 First-Time Homebuyer Credit Repayment - Enter the amount of this year's credit repayment for the taxpayer and the spouse (if applicable). (Generally $500, or $250 for the taxpayer and the spouse if MFJ in the year they received the credit). If you are unsure of the amount to enter, select First Time Homebuyer Credit Account Look-up. In order to look up the payment amount, you will need to know the taxpayer and/or spouse's SSN, the taxpayer and/or spouse's date of birth, and the address of the house that the taxpayer/spouse received the credit for.
IRS Instructions for Form 5405
Common Form 1040 IRS e-File Reject Codes
Common Form 1120 IRS e-File Reject Codes
Common Form 1120-S IRS e-File Reject Codes