What is the subtraction for First-time Home Buyer Savings Account Contributions and Earnings?
The First-time Home Buyer Savings Account Contributions and Earnings (FTHBSA) subtraction is offered for amounts deposited into a designated FTHBSA account during the tax year.
Requirements
- You haven't purchased or owned a single-family home (either individually or jointly with your spouse) in the three years prior to the day you plan to purchase a new home in Oregon and you're an Oregon resident.
- A FTHBSA account was opened between January 1, 2019 and December 31, 2026.
- Money deposited into the account is only used to pay for qualifying costs of buying a single-family home within 10 years of initially opening the account.
What are eligible costs for withdrawals from first-time home buyer savings accounts (FTHBSA)?
If all of the above apply to your situation, you can subtract up to $5,000 ($10,000 if filing a joint return) in deposits and earnings for the year each year for up to 10 years (or until you reach a total subtraction of $50,000). The maximum subtraction you can take is limited by your federal adjusted gross income (AGI).
Married Filing Jointly AGI Limits
| If your federal AGI is at least: |
And your federal AGI is less than: |
Your maximum FTHBSA subtraction is: |
| $0 |
$149,000 |
$10,000 |
| $149,000 |
$158,000 |
$8,000 |
| $158,000 |
$167,000 |
$6,000 |
| $167,000 |
$176,000 |
$4,000 |
| $176,000 |
$187,000 |
$2,000 |
| $187,000 or more |
$0
|
All Other Filing Statuses' AGI Limits
| If your federal AGI is at least: |
And your federal AGI is less than: |
Your maximum FTHBSA subtraction is: |
| $0 |
$104,000 |
$5,000 |
| $104,000 |
$111,000 |
$4,000 |
| $111,000 |
$117,000 |
$3,000 |
| $117,000 |
$123,000 |
$2,000 |
| $123,000 |
$131,000 |
$1,000 |
| $131,000 or more |
$0
|
Penalties
You will have to pay penalties on
nonqualified withdrawals.
