S2-F1040-147 reject code indicates that the installment is due as the first-time homebuyer and this is why the IRS has denied processing your returns further. A taxpayer who receives this error must duly include the amount on Schedule 2 of form 1040 and include 5405 if necessary.
Besides the above reject code, taxpayers may also face reject code IND-147 which also discusses the issue related to first-time home buyer installments.
What are the Possible Solutions to Reject Code S2-F1040-147?
Follow the simple steps mentioned to smoothly resolve the S2-F1040-147 rejection code shown by the Internal Revenue Service.
- Taxpayers can make use of the first-time homebuyer credit account look-up tool to check their balance credit.
- You will notice the Taxes input folder, Go to it.
- On the 5405 screens, click it.
- You will be required to fill out 5405.
- Use the account look-up tool on the 5405 screens to determine what information or data you need to enter. Here you will find instructions and help.
- Ensure that you enter or type taxpayer in the owner in which the credit was taken for the first-time buyer with respect to the home.
- In case you as the taxpayer are no longer the owner of the home, you need to fill out the reason for it. You might even have to change the main home and the selling date, or no longer be used as a principal residence. Doing so will indicate that no future repayment is needed.
- Once done, recreate the tax documents and refile the same.
However, if you still face issues with resolving the reject code s2-f1040-147 then you can always seek aid from the authority’s helpdesk. You might even want to consider a paper return if you are unable to file it electronically.
Reject code S2-f1040-147 occurs when you fail to make installments on the house bought for the first time. To resolve this, you might require form 5405. It’s crucial that you enter all the required information on form 5405 accurately.
Frequently Asked Questions
S2-F1040-147 reject code deals with the payment issue related to first-time home purchases.
Some who has never owned a primary residency before or in the past three years.
No, the First-Time Homebuyer Credit is no longer available. You could refer to the IRS guidelines on this.
The credit can be claimed by completing Form 5405 and attaching it to your tax documents.
Eligibility requirements included income limits, purchase price limits, and residency requirements.
It was set up as a loan initially, that had to be repaid, but it was later changed to a tax credit that did not have to be repaid.
If you sold your home within 36 months of purchasing it and received the credit, you may be required to repay all or a portion of the credit.
Yes, you could claim it.
If you received a notice from the IRS regarding your First-Time Homebuyer Credit, you should read it carefully and follow any instructions provided.