Topeka, Kan. – It is often joked that there is a “national day of” calendar event for everything imaginable. March 7 is national Sock Puppet Day. August 3 is a celebration of big foreheads. November 14 is national Spicy Guacamole Day. The ever-growing list of National day of events can be a fun excuse to celebrate a unique tradition. They can be a pleasurable justification to eat something sweet or savory. But, best of all, they have become a good reason to educate.
May 1st is celebrated as National New Homeowners Day. A day dedicated to drawing attention to the excitement around new homeownership. The purchase of a first home is a life achievement that, for many, comes with a great sense of pride. The road to first-time homeownership can be long and often come with a detour or two. In an effort to help Kansans ease the path to the purchase of their first home, the Kansas Legislature passed a bill to allow for the establishment of First-time Home Buyer (FTHB) Savings Accounts. These FTHB Savings Accounts are a great way for Kansas residents to save money for
the purchase of a first home for themselves or a designated beneficiary.
• Who is eligible for a First-Time Home Buyer Savings Account?
A qualified Kansas First-Time Home Buyer is a person who has never owned or purchased under contract for deed, either individually or jointly, a single-family, owner-occupied primary residence including, but not limited to, a condominium unit or a manufactured or mobile home that was assessed and taxed as real property; or as a result of the individual’s dissolution of marriage, has not been listed on a property title for at least three consecutive years.
• How do Kansans open and register an account?
Potential account owners can establish a First-Time Home Buyer Savings Account at any qualified financial institution. Financial institution means any state bank, state trust company, savings and loan association, federally chartered credit union doing business in this state, credit union chartered by the state of Kansas, national bank, broker-dealer, mutual fund, insurance company or other similar financial entity qualified to do business in Kansas. Financial institutions are not required to classify money saved in these accounts as funds intended for the purchase of a first-time home. After establishing an account with a qualifying financial institution, an account owner designates the account as a First-Time Home Buyer Savings Account by reporting the account and its funds to the Kansas Department of Revenue on Schedule FHBS when filing their Kansas Income Tax Return.
• What are the tax advantages to opening a First-Time Home Buyer Savings Account?
Contributions made by Kansas state income taxpayers to a First-Time Home Buyer Account
during the tax year may qualify for a state income tax deduction for the account holder. Up to $3,000 can be deducted for individual filers, and up to $6,000 can be deducted for joint filers.
“Kansans looking to have a leg up in their savings efforts towards the purchase of a first home should consider the tax-advantages associated with the First-Time Home Buyer Savings Account,” said State Treasurer Steven Johnson.
As the State Treasurer’s Office continues its educational efforts around FTHB Savings Accounts, the state is relying on partnerships with local financial institutions to help Kansans better understand how these tax-advantaged savings accounts can offer individuals a great savings option in the pursuit of homeownership. Some financial institutions, like nbkc bank, have committed resources to help Kansans in their pursuit of homeownership. Visit Treasurer.ks.gov to learn more about First-Time Home Buyer Savings Accounts and visit your preferred financial partner to begin your tax-advantaged road to first-time homeownership.
