First-Time home buyers credit.

[rwm221]

I am working with a client who pays $500 back a year for the first-time home buyers credit. He sold his house in 2021 but still owes the IRS $2000 from the credit. He said he paid it off once he sold his house. But can't prove it. I don't see anywhere on the 5405 where I could put that he paid it and I don't know how to check to see if he did pay it.

Thank You

[TaxGuyBill]

He said he paid it off once he sold his house. But can't prove it.

It would not have been paid off as part of the closing of the house sale. The only possible thing would be if an Estimated Tax payment was made for that (and he should have proof of any payments made to the IRS).

Just to double check - you said the house was sold in 2021 (the current tax return), right? If it was sold in a previous year, it would have been paid off via Form 5405 in that previous year.

[WTorres]

Here is a link that you can verify with the IRS the details.

First Time Homebuyer Credit Account Look-Up