If you are saving up to buy your first home in Kansas and looking to get some tax benefits from doing so, you may be interested in talking to your financial institution about a first time home buyers savings account. The bill was signed into law by Governor Laura Kelly in 2022.
First time home buyers can set up their savings account at any Kansas financial institution, then contribute up to $3,000 for an individual or $6,000 for a married couple tax-free per year. Kansans can save up to $50,000 tax-free in a Kansas First-Time Homebuyer Savings Account. The savings is not limited to use as a down payment, but can also be used for closing costs to purchase a home or to construct primary residence in the state of Kansas.
With a $50K and limited annual contributions It would take about 8-16 years to max out the account. I’ve helped a lot of first time home buyers get into a house for under $6K. If you are a college student or a young couple saving up to buy your first home, this program could be very beneficial.
Apparently, you can even open and the account as a gift! Hey, Mom and Dad!
Read more here: https://www.ksrevenue.gov/taxnotices/notice21-06.pdf
Missouri has a similar program called Missouri First Home.
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