2008 First Time Homebuyer Credit and Divorce

[Julie Blue]

In 2008, my ex-spouse and I took the $7500 First Time Homebuyer Credit.  We've consistently made payments of $500 each year in our taxes. When we divorced, I kept the home. This year I paid the $500 in my taxes, since I'm now responsible for the full balance.  The IRS just sent me a letter requesting I complete Form 5405 to support paying the $500. However, when I enter what I think is the correct info on the form, it's telling me to enter the full balance of the loan ($4500) on line 60b of my 1040, instead of the $500 annual payment. I tried calling the IRS, but after being on hold a few minutes their system hangs up the call.  From what I've read, I don't think I even need to send them this form, since I'm still living in the residence and making annual payments on the loan/credit.  Am I correct?

Thank you,

Julie