Questions & Answers

What is a Mississippi first-time home buyers savings account?

A first-time home buyers savings account is a savings or money market account you set up to cover qualified costs in the purchase of a single-family residence. Qualified costs include the down payment and closing costs for such a purchase.

Any amounts contributed to a Mississippi first-time home buyers savings account and any interest the account earns isn't taxable by Mississippi. Withdrawals from the account are only taxable if they aren't used to pay for qualified costs as mentioned above. In this case, taxable withdrawals are also subject to an additional 10% tax.

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