M1HOME: First-Time Homebuyer Savings Account (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule M1HOME registers a first-time homebuyer savings account and designates its qualified beneficiary. It reports account contributions, withdrawals, interest, and dividends to determine your subtraction, addition, and any additional tax for 2025.
Who files this form
Complete a separate 2025 Schedule M1HOME for each qualified first-time homebuyer savings account you earned interest and dividends from or took a distribution from in 2025.
The schedule is used to register a Minnesota first-time homebuyer savings account, designate a qualified beneficiary, and determine your subtraction, addition, and additional tax.
What you'll need
Have the following information ready to complete the schedule:
- Your name and Social Security number.
- The bank name, account number, date opened, and beginning and ending balances.
- The qualified beneficiary’s name and the date you named them.
- Withdrawal dates, amounts, and purposes.
- Contributions made before 2025, prior-year distributions, and contributions made in 2025.
- Qualified and nonqualified withdrawals made in 2025.
- Interest and dividends earned in 2025. You may find this amount on a federal Form 1099 issued by your financial institution.
The schedule also directs you to enter certain amounts on Schedule M1M and, if additional tax applies, Form M1.
Common mistakes
- Combining accounts on one schedule: Complete a separate Schedule M1HOME for each account.
- Using cents: Round amounts to the nearest whole dollar.
- Exceeding the contribution amounts allowed on the form: For 2025, do not enter more than $14,000 on line 2, or $28,000 if married filing jointly. On line 3, do not enter total contributions above $50,000, or $100,000 if married filing jointly.
- Overlooking prior-year distributions: Reduce the contributions reported on line 1 by distributions from the account in prior years.
- Failing to name the beneficiary on the schedule: You must name the beneficiary on Schedule M1HOME to qualify for the subtraction.
- Including excluded withdrawals on line 5: Do not include withdrawals due to the account holder’s or designated qualified beneficiary’s death or disability, disbursements under federal bankruptcy law, or disbursements under Minnesota Statutes 550 or 551.
- Continuing after a zero or negative line 7 result: Stop if line 7 is zero or less. If it is positive, enter it on Schedule M1M, line 5, and complete line 8. Enter the line 8 tax on Form M1, line 14, and check the Schedule M1HOME box.
Questions people ask
Who can be a qualified beneficiary?
The beneficiary is the 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, and the beneficiary may be changed at any time.
When do I name the beneficiary?
Typically, you name the beneficiary when you open the account. To qualify for the subtraction, you must name the beneficiary on Schedule M1HOME.
What counts as a qualified withdrawal?
Funds used for a down payment, closing costs, construction costs, or construction financing for a single-family residence in Minnesota qualify. A single-family residence also includes a manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative.
What amount can I subtract for 2025?
Enter the interest and dividends earned on the account in 2025 on Schedule M1HOME, line 6, and Schedule M1M, line 27.
How are the addition and additional tax calculated?
Subtract line 3 from the nonqualified withdrawals on line 5. If the result is zero or less, you have no addition and stop there. If the result is positive, enter it on Schedule M1M, line 5. Multiply that positive amount by 10% and enter the additional tax on Schedule M1HOME, line 8, and Form M1, line 14.