As of January 1, 2018, an individual may establish a first-time homebuyer savings account in the state of Iowa. This allows the account holder to claim a deduction for Iowa individual income tax equal to the amount of contributions the holder made during the tax year, up to $2000 for single filers.
After some DD, it appears there are other states that have similar programs (Colorado, Minnesota, Montana, etc.). Does anyone have experience with these accounts?
Secondly, am I correct in thinking that a deduction in state income taxes guarantees a X% ROI equal to my marginal tax rate?
Ex. If I contribute $2000 into the FTHBSA I effectively lower my tax liability by ~$138, assuming my marginal tax rate for Iowa income tax is 6.8%. This would translate to a 6.8% (138 / 2000) return.
Any input would be greatly appreciated.
Submitted January 21, 2018 at 09:42AM by lennydykstra4 http://ift.tt/2rp4lUt
