You may deduct up to $2,050 ($4,100 if Married Filing Jointly) in qualifying contributions made during the tax year. This deduction limitation is based on the account holder, so even though you my have contributed to multiple accounts for more than one beneficiary, your total deduction may not exceed $2,050 ($4,100 if Married Filing Jointly).
Contributions are only deductible if they are made to accounts that have been designated as First-Time Homebuyer Savings Account by submitting an Account Holder and Designated Beneficiary Form to the Iowa Department of Revenue by July 31 of the calendar year following the year in which you opened the account. This form should be submitted separate from your Iowa income tax return.
Taxpayers are required to complete a First-Time Homebuyer Savings Account Annual Report to claim this adjustment. If you e-file your Iowa return, keep the First-Time Homebuyer Savings Account Annual Report for your records and send it to the Iowa Department of Revenue if they request it. If you are unable to successfully e-file your Iowa return, attach the First-Time Homebuyer Savings Account Annual Report to your printed Iowa return and mail it to the Iowa Department of Revenue.