In 2024, Ohio introduced a new and exciting way for residents to save for a home: Ohio Homebuyer Plus. This program provides a tax-advantaged savings account that helps individuals save for the purchase of a home while also offering significant Ohio tax benefits. Whether you’re a first-time homebuyer or looking to buy a new home in Ohio, this initiative can help you reach your goal faster and more affordably.
Key Features of Ohio Homebuyer Plus:
- Eligibility: Must be an Ohio resident and at least 18 years old.
- Primary Residence Requirement: The home must be in Ohio and serve as your primary residence.
- Account Use: The funds in your account are to be used exclusively for the down payment and/or closing costs of an Ohio home.
- Timeframe: Funds must be used within 5 years of opening the account to qualify for benefits.
- Interest Rates: The program offers higher-than-market interest rates, helping your savings grow faster.
How the Tax Deduction Works:
- Deduction on Contributions: Contributions to the Ohio Homebuyer Plus account can be deducted on your Ohio state income tax return.
- Individual Filers: Can deduct up to $5,000 annually per account.
- Joint Filers: Can deduct up to $10,000 annually per account.
- Contributions from family members (parents, grandparents, etc.) also qualify for their own tax deductions.
- Contribution Limits:
- The maximum deduction per contributor over the account’s lifetime is $25,000.
- Total contributions allowed over the account’s lifetime is $100,000.
- Interest Exclusion: Interest earned in the account is tax-exempt for Ohio income tax purposes as long as the funds are used for the down payment or closing costs of a home.
Why Ohio Homebuyer Plus is a Smart Choice:
- Tax Savings: Reduces your taxable income while helping you save for a home.
- Flexible Contributions: Family members can contribute, maximizing the tax benefits for everyone involved.
- Higher Interest: Earn above-market interest rates on your savings.
- Maximized Savings: The program’s benefits—tax deductions, interest exclusion, and flexible contribution limits—make it an excellent option for those planning to buy a home in Ohio.
How to Get Started:
To take advantage of this program, prospective homebuyers must work with a participating bank or credit union and open an Ohio Home Buyer Plus account. A list of participating financial institutions can be found through the program’s website.
This program is an ideal way to jumpstart your home-buying journey in Ohio while saving on taxes. For more details, visit the article from the Ohio Treasurer’s website.
To explore additional Ohio homebuyer programs, including down payment assistance, grant for grads, Ohio Heroes assistance, mortgage tax credit, affordable loan rates and more, see the Ohio Housing Finance Agency ‘My Ohio Home’ webpage.
This material is presented solely for information purposes and has been gathered from sources believed to be reliable, however, Landing Point cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Nothing in this presentation is intended to serve as personalized investment, tax, or insurance advice, as such advice depends on your individual facts and circumstances. Advisory services are only offered to clients or prospective clients where Landing Point and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Landing Point unless a client service agreement is in place.