5792: First-Time Home Buyer Savings Program (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 5792 is filed with your Michigan Individual Income Tax Return to report first-time home buyer savings account information and calculate deductions for net contributions and interest earned. It also calculates addback amounts and penalties for nonqualified withdrawal
Who files this form
File Form 5792 with your Michigan Individual Income Tax Return (Form MI-1040) to report first-time home buyer savings account information and claim an eligible deduction. The form also reports nonqualified withdrawals, related addbacks, and penalties.
Each account must have an account holder and a qualified beneficiary. The beneficiary may be the account holder or another Michigan resident.
A qualified beneficiary must be a Michigan resident who has not owned or purchased a single-family residence, individually or jointly, during the 3 years before buying a Michigan single-family residence. Do not include an account if its beneficiary does not qualify.
When it's due
The tax year 2024 form states that a first-time home buyer savings account may be opened from January 1, 2022, through December 31, 2026. This is the program's account-opening window, not a return filing deadline.
The supplied text does not state a filing due date for the 2024 form.
What you'll need
If you are the account holder, submit these documents with your income tax return:
- Account statements showing contributions and taxable interest or earnings for the tax year in which you claim the deduction.
- The Form 1099 issued by the financial institution for that tax year.
- When funds are withdrawn, a copy of the real estate settlement statement showing that the withdrawal paid eligible costs.
If you claim a deduction but are not the account holder, provide account statements showing your contributions and any qualified withdrawals.
To complete Form 5792, have the account holder's and beneficiary's names, financial institution name, account number, beginning and ending balances, opening date, and any withdrawal dates available.
How to file
File Form 5792 with Form MI-1040, along with the required supporting documents. The supplied text does not give a mailing address or e-file directions.
- Complete the account information and contributions table. Report net contributions, meaning contributions minus qualified withdrawals during the year.
- On line 1, report total net contributions, limited to $5,000 for single filers or $10,000 for joint filers.
- On line 2, add eligible interest from all accounts. Report interest only if you are the account holder and it was included in your adjusted gross income (AGI).
- Add lines 1 and 2 on line 3, and enter that amount on Schedule 1, line 21.
- For nonqualified withdrawals, complete the table on page 2. Carry the total addback from line 4 to Schedule 1, line 8, and the total penalty from line 5 to MI-1040, line 22.
Common mistakes
- Including an ineligible beneficiary's account. The form says not to include that account's information.
- Reporting contributions without subtracting qualified withdrawals. Report net contributions. If multiple taxpayers contributed and there was a qualified withdrawal, prorate the withdrawal as directed. Net contributions cannot be less than $0.
- Completing the withdrawal date incorrectly. Leave it blank if there was no withdrawal. Enter “various” if there were multiple withdrawals.
- Using account funds for other purposes. The instructions warn that using funds for purposes other than eligible costs for a qualified beneficiary's Michigan single-family residence can result in penalties and loss of tax benefits.
Questions people ask
Can I be the beneficiary of my own account?
Yes. The account holder may also be the qualified beneficiary.
Can I open more than one account?
Yes, but each account you establish must have a different qualified beneficiary. A qualified beneficiary may be named on more than one account.
What costs are eligible?
Eligible costs are the down payment and disbursements listed on the settlement statement for the purchase of a Michigan single-family residence.
Is there a maximum account balance?
Yes. The maximum is $50,000, but the account may continue to earn interest after reaching that balance.
What happens if I make a nonqualified withdrawal?
You may need to add back previously deducted amounts. A 10% penalty applies to nonqualified withdrawals reported with reason code 60. The instructions list exceptions under codes 10 through 50; an exception to the penalty does not necessarily eliminate the addback.