IS BUYING A HOME IN YOUR NEAR FUTURE?
Maryland first-time homebuyers may open a savings account at a financial institution where they can deposit up to $5,000 per year for down payment and closing costs.
- A first-time homebuyer is someone who has not owned a home in Maryland in the last 7 years
- Contributions may be made for a 10 year period for a total amount of $50,000
- Funds must be used by Dec 31st of the 15th year following the date the account was established
- Yearly contributions can be deducted from your state income taxes on Form 502SU
- Contributions to the FHSA can be made by a 3rd party, such as a parent, and the account holder may still claim the deduction for that contribution
- A 10% tax penalty applies for any funds withdrawn that are not used for the purchase of a home
- Consult with your tax professional for any tax advice
- For more information, visit MarylandTaxes.gov
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Published on 2023-03-04 08:53:03
