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The First-Time Homebuyers Savings Account: An Investor's Guide

Jun 05, 2021 by Lea Uradu

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State Limit on Deposit Tax Deduction
Alabama Alabama does not limit the amount of money that can be deposited into the savings account. The tax deduction is limited to $5,000 ($10,000 for MFJ) per year for up to five years, for a total five-year deduction of $25,000 ($50,000 for MFJ).
Colorado In Colorado, account holders can contribute up to a total of $50,000 in principal, and the account can grow in value up to $150,000. There will be an annual contribution cap of $14,000 ($28,000 if filing jointly). There is no limit on how long the account can exist Account holders can deduct the amount of taxable interest and/or earnings on a qualified first-time homebuyer Savings account in the tax year claimed.
Iowa Iowa does not have a deposit limit; account holders may contribute an unlimited amount of money, and the funds must be used within ten years of opening the account. Account owners may exclude from their adjusted gross income contributions to their (FTHSA). The exclusion amount is as follows: $2,137 per year if single and $4,274 if married and the account is jointly opened and maintained. . Additionally, any interest earned on the account is nontaxable.
Idaho Idaho allows account holders up to $15,000 annually ($30,000 for joint account holders and fillers). The maximum account value allowed is $100,000. The annual savings can be subtracted from Idaho’s taxable income.
Minnesota Account holders can contribute up to $14,000 annually ($28,000 for married filing joint). The maximum amount an account holder can contribute during the lifetime of the account is $50,000 ($100,000 for married filing joint). Account holders may receive a deduction for interest and dividends earned on contributions to the account.
Mississippi Mississippi limits annual contributions to FHSAs to $2,500 ($5,000 if MJF). Additionally, account holders may deduct up to $2,500 ($5,000 if MJF).
Montana Montana does not have a limit on the amount of money an account holder can deposit into an account. Account holders may exclude up to $3,000 annually ($6,000 for those married, filing jointly) for up to 10 years from taxation. Any interest earned on the account is nontaxable.
Oregon Oregon does not have a deposit limit; account holders may contribute an unlimited amount of money to their FHSAs. Residents of Oregon are allowed a maximum subtraction of $5,000 per year ($10,000 for MFJ) if the account holder earns less than $104,000 ($149,000 for joint filers). Account holders earning more than the threshold amount may still claim the subtraction, but the amount is reduced as specified in Publication OR-17​. The maximum subtraction account holders can claim is 50,000 in all tax years.
Virgina Virginia limits the total principal contribution to the FHSA to $50,000 and the total value of the account including interest cannot exceed $150,000. Interest and capital gain accrued on the account are nontaxable.

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