Knowledge Base

11967: 1040 - Reject F1040-394 Homebuyer Repayment Exceeds Credit

Rejects + EF Messages

How do I correct reject F1040-394?

This reject refers to a credit entered on Form 5405 page 2:


Form 1040, Line 60b 'FirstTimeHmByrRepaymentAmt' must not be greater than the First Time Homebuyer Credit amount in the e-file database.

This reject is the result of a comparison made between the credit entered on form 5405 and the credit shown in IRS records. This reject also can occur if only one spouse received the credit, and the HOME screen TSJ box is not marked for that taxpayer or spouse. The taxpayer will need to contact the IRS to determine the correct amount of the credit, and then modify the repayment accordingly.

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