Article: 50559
Overview
Minnesota allows taxpayers to subtract certain contributions and interest from income when funds are deposited in a qualified First-Time Homebuyer Savings Account. These accounts are meant to help Minnesotans save for the purchase of their first home and offer tax benefits for both contributors and account holders.
To report this on your state return, you must complete the First-Time Homebuyer Savings Account form.
Who Can Use This Form?
You should complete this form if:
- You made contributions to a designated First-Time Homebuyer Savings Account, or
- You are the designated beneficiary of such an account and are using or tracking funds for a qualifying home purchase, or
- You are reporting interest earned, distributions, or penalties related to the account.
Note: The program allows a subtraction from income for contributions and interest earned. Improper use of funds may require an addition back to income or a penalty.
Tips for Filing
- Only one account per beneficiary is allowed.
- Withdrawals must be made for qualified home expenses (e.g., down payment, closing costs) to retain tax benefits.
- Unused or misused funds may result in recapture of tax benefits or additional tax.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select Minnesota.
- Click on the Other tab.
- Select First-Time Homebuyer Savings Account to open the screen.
- Enter all applicable information.
- Click Save once complete.
Additional Resources
For further guidance, see:
2024 Form M1HOME – MN First-Time Homebuyer Savings Account (PDF)