8 September 2023
TOPEKA (KSNT) – State officials say a new resource is available to Kansans looking to buy their first homes.
Kansas State Treasurer Steven Johnson made the announcement about the new resource on Thursday, Sept. 7 in a press release. A new page on the state treasurer’s website contains information on the First-Time Home Buyer Savings Accounts Act which allows Kansans to save cash to buy a first home for themselves or a designated beneficiary.
Clint Blaes with the state treasurer’s office said the act was established by the Kansas Legislature in 2021 with changes being made to it in 2023 to help market the program. These changes included providing a procedure for the distribution of a First-Time Home Buyer Savings Account if the holder of the account dies and resolving a conflict when beneficiaries differ on a financial institution’s account records and tax forms.
“Saving for the purchase of a first home is one of the most significant steps on many Kansans’ financial journey,” Johnson said. “As a member of the Legislature, I was pleased to support the bipartisan effort to establish the First-Time Home Buyer savings program as a way to help make saving for that purchase easier. Earlier this year, the Legislature asked our office to help increase awareness of this savings opportunity, and launching this webpage today is our first step in those efforts.”
The state treasurer’s website allows Kansas residents to take an annual deduction of up to $3,000 for independent filers and $6,000 for joint filers from their Kansas adjusted gross income for contributions into each beneficiary’s account, according to the press release. Interest earned on the accounts is also exempt from state income tax, up to a certain point. The accounts can be opened at any qualified financial institution including any state or federally chartered bank or union.
On the website, Kansans can find information on how to open and register an account, eligibility requirements and links to required tax forms along with other helpful details, according to the press release. To find out more about the program, click here.