Updated October 19, 2026. Quick answer: Form 5405 is the Repayment of the First-Time Homebuyer Credit. The November 2024 instructions say 2024 is the last year to file it, and that the repayment rule continues to apply only to homes purchased in 2008. The form is attached to a 2024 return when the home was disposed of or stopped being the main home in 2024.
Quick reference
| Item | As the IRS form or instructions state it |
|---|---|
| Form and revision read | Form 5405 (Rev. November 2024), Repayment of the First-Time Homebuyer Credit |
| Last year to file | “2024 is the last year to file Form 5405.” |
| Repayment period | “The 15-year repayment period for homes purchased in 2008 began with your 2010 tax return and ends with your 2024 tax return.” |
| Minimum yearly repayment | “You must repay at least one-fifteenth (1/15) of the credit with every tax return during the repayment period until the year the credit is paid in full.” |
| Ownership test for related persons | “A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporation.” |
| Worked example in the instructions | “You are required to repay at least $500 of the credit ($7,500 ÷ 15 years = $500) each year for 15 years starting with your 2010 tax return.” |
| Where the repayment is entered | “Next: Enter the amount from line 8 on your 2024 Schedule 2 (Form 1040), line 10.” |
| Layout of the form | Part I (lines 1 to 3), Part II (lines 4 to 8) and Part III (lines 9 to 15) |
What Form 5405 is for and who files it
The instructions open with a notice that this is the end of the form: “2024 is the last year to file Form 5405.” “The 2024 revision is the last revision of Form 5405 and these instructions.”
On which homes are covered, “The repayment requirement has expired for homes purchased after 2008.” “The repayment requirement continues to apply to homes purchased in 2008.”
The filing rule is narrow. “You must file Form 5405 with your 2024 tax return if you purchased your home in 2008 and you meet either of the following conditions.” The conditions are “You disposed of it in 2024.” and “You ceased using it as your main home in 2024.”
When it is filed and who does not file
The form is attached to the return, and the form says “Attach to Form 1040, 1040-SR, 1040-NR, or 1040-X.” Taxpayers who still live in the home skip the form: “In all other cases, you aren’t required to file Form 5405.” “Instead, enter the repayment on 2024 Schedule 2 (Form 1040), line 10.”
Married couples are treated by halves. “If you and your spouse claimed the credit on a joint return, each spouse is treated as having been allowed half of the credit for purposes of repaying the credit.” “Each spouse who meets either condition 1 or 2 above must file a separate Form 5405.”
The parts and lines of Form 5405
Part I is titled “Disposition or Change in Use of Main Home for Which the Credit Was Claimed”. Line 1 asks for “the date you disposed of, or ceased using as your main home, the home for which you claimed the credit”. Line 3 offers boxes a through h for the type of event.
Part II is the repayment itself. Line 4 reads “Enter the amount of the credit you claimed on Form 5405 for 2008.” Line 8 is the amount to repay, and the instructions give one of the rules for it: “If you checked the box on line 3a, enter the smaller of line 6 or line 7 on line 8.”
Part III is a worksheet with its own limit on use: “Complete this part only if your home was destroyed or you sold your home to someone who isn’t related to you”. Line 9 is the selling price, and line 15 gives the gain or loss figure that feeds back to Part II.
Exceptions and the figures that matter
The instructions also give exceptions, starting with certain public service members: “If you (or your spouse, if married) meet both of these conditions, you (and your spouse, if married) don’t have to repay the credit.” Extended duty is defined by distance or housing, as in “Serving at a duty station that is at least 50 miles from your main home, or” and by length of orders: “You are on extended duty when you are called or ordered to active duty for a period of more than 90 days or for an indefinite period.”
Death can end the duty for the person who claimed it. The form says “The taxpayer who claimed the credit died in 2024. No repayment of the credit is required of the deceased taxpayer.” The instructions add a joint-return condition: “If a person who claimed the credit dies, repayment of the remaining balance of the credit isn’t required unless the credit was claimed on a joint return.”
The instructions give a worked example for the minimum amount: “You claimed a $7,500 credit for a home purchased in 2008.” “You are required to repay at least $500 of the credit ($7,500 ÷ 15 years = $500) each year for 15 years starting with your 2010 tax return.” The example then notes that the writer chose to repay more once, and the final figure reads “The minimum repayment with your 2024 tax return is $300”.
On who counts as related, the instructions list “A partnership in which you directly or indirectly own more than 50% of the capital interest or profits interest.”
Where to go next
The repayment is entered on Schedule 2, which is explained on the Schedule 2 (Form 1040) page. A sale of the home is covered on the home sale taxes page, and the gain figures are on the Form 8949 code H page. Joint filers can also read the Form 1040 page.
Where this comes from
The editions read for this page are Form 5405 (Rev. November 2024) and the Instructions for Form 5405 (Rev. November 2024), which are the revisions irs.gov served when they were read on 2026-10-19. The instructions describe the 2024 tax year, and the IRS calls that revision the last one. This page describes Form 5405 (Rev. November 2024), Repayment of the First-Time Homebuyer Credit; Instructions for Form 5405 (Rev. November 2024), as served on irs.gov on October 19, 2026. The IRS can revise a form after we read it, and the form you file and its own instructions control. Current and earlier revisions are listed on the IRS page Forms, Instructions and Publications. General information, not tax or legal advice.
Common mistakes
- Assuming every homebuyer credit is still being repaid. The instructions say “The repayment requirement has expired for homes purchased after 2008.”
- Filing Form 5405 whenever a payment is due. The instructions say “In all other cases, you aren’t required to file Form 5405.”
- Treating a joint credit as one person’s repayment. The instructions say “each spouse is treated as having been allowed half of the credit for purposes of repaying the credit.”
- Looking for a 2025 revision. The instructions say “The 2024 revision is the last revision of Form 5405 and these instructions.”
Related: Schedule 2 (Form 1040), home sale taxes, Form 8949 code H, and home sale exclusion calculator.
Sources
- Form 5405 (Rev. November 2024), Repayment of the First-Time Homebuyer Credit: https://www.irs.gov/pub/irs-pdf/f5405.pdf
- Instructions for Form 5405 (Rev. November 2024): https://www.irs.gov/pub/irs-pdf/i5405.pdf
Read from the IRS pages linked above on October 19, 2026. General information, not tax or legal advice. The IRS form and the instructions for your own form control, and your own facts decide the outcome.