M1HOME: First-Time Homebuyer Savings Account (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota’s 2024 Schedule M1HOME registers a first-time homebuyer savings account and designates its qualified beneficiary. It reports account balances, contributions, withdrawals, interest, and dividends to determine your subtraction or addition and any additional tax.
Who files this form
Complete a 2024 Schedule M1HOME for each qualified first-time homebuyer savings account from which you earned interest and dividends or took a distribution in 2024.
Use the schedule to:
- Register a first-time homebuyer savings account in Minnesota.
- Designate a qualified beneficiary.
- Determine your subtraction, addition, and additional tax.
If you hold more than one account, complete a separate schedule for each account.
What you'll need
Have the following information ready to complete the schedule:
- Your name and Social Security number.
- Bank name, account number, date the account opened, and beginning and ending balances.
- The qualified beneficiary and the date you named them.
- Dates, amounts, and purposes of withdrawals.
- Contributions made before 2024, prior-year distributions, and contributions made during 2024.
- Interest and dividends earned in 2024. You may find this amount on a federal Form 1099 issued by your financial institution.
The schedule directs you to report the subtraction or addition on Schedule M1M and any additional tax on Form M1.
Common mistakes
- Combining accounts on one schedule: Complete a separate Schedule M1HOME for each account.
- Not rounding amounts: Round to the nearest whole dollar.
- Not adjusting prior contributions: On line 1, reduce contributions made before 2024 by distributions taken in prior years.
- Exceeding the contribution limits: On line 2, do not enter more than $14,000 for 2024, or $28,000 if married filing jointly. Total contributions on line 3 must not exceed $50,000, or $100,000 if married filing jointly.
- Including excluded withdrawals on line 5: Do not include withdrawals due to the account holder’s or beneficiary’s death or disability, asset disbursements under federal bankruptcy law, or account asset disbursements under Minnesota Statutes 550 or 551.
- Continuing when line 7 is zero or less: Stop there. You do not have an addition.
- Missing the Form M1 checkbox: When reporting additional tax from line 8 on line 14 of Form M1, check the Schedule M1HOME box.
Questions people ask
Who can be a qualified beneficiary?
The beneficiary may be a person or married couple designated by the account holder. The beneficiary must be a Minnesota resident who has not had an ownership interest in a principal residence in the last three years. The account holder may be the beneficiary.
Can I change the beneficiary?
Yes. You may change the qualified beneficiary at any time. To qualify for the subtraction, you must name the beneficiary on Schedule M1HOME.
What counts as a qualified withdrawal?
Funds used for a single-family residence in Minnesota qualify when used for a down payment, closing costs, construction costs, or financing construction. A single-family residence also includes a manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative.
What amount can I subtract?
The interest and dividends earned on the account in 2024 are your subtraction. Enter the amount on line 6 of Schedule M1HOME and line 27 of Schedule M1M.
How are the addition and additional tax calculated?
Subtract line 3, total contributions, from line 5, nonqualified withdrawals. If the result is zero or less, you have no addition and should stop. If it is positive, enter it on line 7 and line 5 of Schedule M1M. Multiply that amount by 10% for line 8, and report the additional tax on line 14 of Form M1.