AL – Alabama Schedule HBC – First Time and Second Chance Home Buyer Savings Account Deduction

Table Of Contents


Article: 50148

Overview

The First-Time and Second-Chance Home Buyer Savings Account program allows eligible taxpayers to contribute to a designated savings account for the purpose of accumulating funds for a down payment and closing costs associated with the purchase of a first home in Alabama.

Taxpayers may deduct contributions of up to $5,000 annually for individuals, or up to $10,000 for married couples filing jointly, provided all program requirements are satisfied. In addition, earnings on the account are tax-free if the funds are used in accordance with the program guidelines.

The deduction is available for up to five years, covering the tax years in which deposits are made into the qualifying savings account.

Reporting of Schedule HBC – First Time and Second Chance Home Buyer Savings Account Deduction

To report Schedule HBC in your return, follow the steps below:

  1. Go to the State taxes section.
  2. Click on the Review tab on the left-hand side.
  3. Select I’d like to see the forms I’ve filled out or search for a form.
  4. In the drop list, select Alabama.
  5. Select the Credits tab.
  6. Select Schedule HBC.
  7. Complete the screen.
  8. Click Save to apply changes.
Failure to include this form with your return will result in an automatic denial of the deduction or exclusion.

Additional Information

Review the following links for information on AL Schedule HBC:

Tags
state tax form tax credit dependent irs form tax deduction refund tax return schedule k1 state filing health insurance