What is IDA withdrawal for home purchase?

Did you make a qualified withdrawal from your IDA to buy your home? The withdrawal must be used for settlement, financing or other closing costs incurred in purchasing a primary residence. This credit is in addition to the subtraction for contributions to the IDA.

The credit is the least of:
  • The amount withdrawn from the IDA,
  • The qualifying closing costs to purchase a primary residence,
  • The taxpayer's tax liability for the year, or
  • $2,000.

  • There is no carryforward and the credit is not prorated for part-year residents or nonresidents.

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