Questions & Answers

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.

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