What Does Reject Code S2-F1040-429 Mean?
"Reject Code: S2-F1040-429 | Category: Missing Data | Severity: RejectThe e-File database indicates a First-Time Homebuyer Installment Payment is due for the Spouse SSN. Include an amount on Schedule 2 (Form 1040), 'FirstTimeHmByrRepaymentAmt' and attach Form 5405 if required,"
This means the IRS thinks you or your spouse still need to repay a First-Time Homebuyer Credit.
How to Fix it in Taxslayer Desktop
From the Main Menu of Form 1040, go to Other Taxes.
Select First-Time Homebuyer Credit Repayment.
Click on 2008 First-Time Homebuyer Credit Repayment.
Enter the repayment amount (usually $500, or $250 each if married filing jointly in 2008). If unsure, use the First Time Homebuyer Credit Account Look-up tool – you'll need your SSN, date of birth, and the property address.
Form 5405 is only needed if the home was sold or stopped being your main residence this year.
How to Fix it in Taxslayer ProWeb
From the Tax Return Summary page (Form 1040), head to the Federal Section.
Go to Other Taxes, then Repayment of First-Time Homebuyer Credit.
If filing jointly, choose Taxpayer or Spouse.
Answer: "Did the home stop being your primary residence during the current year?" (Form 5405 is included if you answer "Yes").
Enter the required information:
The total credit received in 2008, or half if filing jointly then.
The total repaid in prior years, or half if filing jointly then.
This year's repayment amount, or half if filing jointly then.
If unsure of the amounts, use the IRS First Time Homebuyer credit account look-up tool – you'll need your SSN, date of birth, and the property address.