Alabama First Time Second Chance Home Buyer Deduction

First Time Second Chance Home Buyer Deduction
HBC
*220006HB*

SCHEDULE

HBC

Alabama
Department of Revenue
Income Tax Administration Division

20__

First Time and Second Chance
Home Buyer Savings Account Deduction
NAME(S) AS SHOWN ON TAX RETURN

PRIMARY’S SOCIAL SECURITY NUMBER

SPOUSE’S SOCIAL SECURITY NUMBER

This schedule is required to be submitted with Form 40 if claiming a deduction for deposits made into any First Time and Second Chance Home Buyer Savings
Account or if excluding any interest earned on the account. Any deduction or exclusion for deposits or interest is limited to the account holders only. Failure to
include this form with your return will result in an automatic denial of the deduction or exclusion.
Part I - Designation of First Time and Second Chance Home Buyer Savings Account(s)
1. Financial Institution Name and Address: •
2. Date Account Opened: •
3. Account Number: •
4. Account Holder(s):
Primary: •
Secondary: •
5.
6.
7.
8.

Financial Institution Name and Address: •
Date Account Opened: •
Account Number: •
Account Holder(s):
Primary: •
Secondary: •

Part II - Deposits made into your First Time and Second Chance Home Buyer Savings Account(s)
1. Total deposits made by the account holder(s) this year: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Total principal and earnings in account(s) at year end: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Deduction Allowed (enter here and on Form 40, Page 2, Part II, Line 13): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the lesser of Line 1 or $5,000 for a filing status of Single or Head of Family or $10,000 for a filing status of Married Filing Joint. If the
account is greater than 10 years old or line 2 is greater than $25,000 for individual accounts or $50,000 for joint accounts, enter zero, no
deduction is allowed.
4. Interest/Earnings this year (enter on Schedule B, Line 1, Column A and Attach 1099): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
You must attach a copy of the statement of account(s) showing all account transactions.
Part III - Withdrawals made from your First Time and Second Chance Home Buyer Savings Account(s)
1. Amount of funds withdrawn from the account(s) this year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. (a) Were the funds used for eligible expenses to purchase a home in the State of Alabama? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) Address of Residence Purchased •
You must attach a copy of the closing statement.
3. Was the total amount of funds withdrawn deposited into another First Time and Second Chance Home Buyer Account? (If yes, you must
provide statements for both accounts.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Non-qualified amounts withdrawn which were not used for eligible expenses to purchase a home or deposited in full into another First Time
and Second Chance Home Buyer Savings account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Non-qualified withdrawals for which a deduction was claimed for deposits must be added back to income for Alabama income tax purposes.
Include amount from line 4 in which a deduction was claimed for deposits made into your First Time and Second Chance Home Buyer
Savings Account on a prior year(s) tax return and any interest earned on the account which you excluded from income on a prior year(s) tax
return (enter here and on Form 40, Page 2, Part I, line 8, Other Income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part IV - Penalty
1. Were the funds withdrawn by reason of account holder(s) death or disability?: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Were the funds withdrawn pursuant to a disbursement of assets under Bankruptcy?: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Were the funds withdrawn due to unemployment after the account holder(s) exhausted applicable unemployment compensation benefits? . . .
4. Penalty for Withdrawal for Purposes Other Than Eligible Costs (if you answered yes to lines 1, 2, or 3, enter 0; otherwise enter 10% of Part
III, Line 4 here and on Schedule ATP, Part II, line 2): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1. •
2. •
3. •

4. •

1. •
2a. • Yes • No

3. • Yes • No
4. •

5. •

1. • Yes • No
2. • Yes • No
3. • Yes • No
4. •
ADOR