j. First-Time Homebuyer Savings Account qualifying contributions

You may deduct up to $2,314 ($4,628 for married filing jointly) in qualifying Iowa First-Time Homebuyer Savings Account contributions made during the tax year. This deduction limitation is based on the account holder, so even though you may have contributed to multiple accounts for more than one beneficiary, your total deduction may not exceed $2,314 ($4,628 for married filing jointly).

Contributions are only deductible if they are made to accounts that have been designated as First-Time Homebuyer Savings Accounts by submitting the Account Holder and Designated Beneficiary Form to the Department. The Account Holder and Designated Beneficiary Form must be submitted to the Department by the due date of the Iowa individual income tax return, April 30 for calendar year filers, of the calendar year following the year in which you opened the account to the address on that form.

The Account Holder and Designated Beneficiary Form must be submitted to the Department separately from your Iowa income tax return.

Taxpayers are also required to complete an Iowa Department of Revenue annual report form and include it with their Iowa income tax return.

Complete and send a First-time Homebuyer Withdrawal Form, 41-163 to the Iowa Department of Revenue when money is withdrawn. Note: this form must be submitted to the Department within ninety (90) days of the date of any withdrawal of funds in any amount from the First-Time Homebuyer Savings Account.

Interest and earnings income from a qualified First-Time Homebuyer Savings Account are exempt from Iowa individual income tax.