Make your dreams a reality

An Idaho First-Time Home Buyer Savings Account is a great tool to help Idaho residents save for a first home while gaining tax benefits. As Idahoan’s, members can reduce the Idaho income tax they owe while saving for their first home through an Idaho First-Time Home Buyer Savings Account (FTHB account). Even if members don’t itemize deductions, they can take advantage of this benefit.

Benefits:

  • Provides members with a higher-yield dividend option compared to other interest-bearing savings accounts.
  • Presents an opportunity for substantial tax savings.
  • Provides the convenience of setting aside funds in a designated account.
  • Offers peace of mind with the security of their savings.
  • Helps members save for future home-buying expenses.
couple getting keys to their home

Open a FTHB Account

Start saving for your dream home today.

Open an Account

What is a First-Time Home?

The home that is purchased must be a single-family residence that the member will own and occupy as their primary residence.

This can include:

  • House
  • Townhome
  • Condominium
  • Manufactured home
  • New homes under construction also qualify

Qualifications

Individual Filers:
To qualify as an individual, all of the following must be true:

  • Live in Idaho.
  • Filed an Idaho income tax return for the most recent tax year.
  • Are a first-time homebuyer (never owned a single-family or multifamily residence, either individually or jointly).

Filed as married filing jointly:

  • Both live in Idaho.
  • One or both have filed an Idaho income tax return for the most
  • recent tax year.
  • At least one is a first-time homebuyer.

Filed as married filing separately, can have an FTHB account if:

  • They meet the individual requirements listed above.
  • They open the account separately from their spouse.

Contribution Limits

Each calendar year, members can contribute: Up to $15,000 if single or married filing separately. Up to $30,000 if married filing jointly. The lifetime contribution limit, including interest, is $100,000.

Transaction Limitations

No withdrawals can be made from this account in the first 30 days after opening the account. The account cannot be transferred to anyone else.
Westmark reserves the right, at any time, to require not less than seven days’ notice, in writing, before each withdrawal from a dividend bearing account of this type as defined in Regulation D.

Tax Benefits & Withdrawals

Members can deduct their contributions and earned interest from their Idaho income tax return. Members won’t owe taxes on withdrawals, including interest, as long as they use the funds for eligible home costs. These include:

  • The down payment on the home.
  • Fees, taxes, or other payments required to purchase the home.
  • Any Veterans Administration (VA) funding fees associated with a VA home loan guaranty.
  • However, non-eligible withdrawals will be taxable.

Tax Reporting

Westmark will report withdrawals on the member’s FTHB to the Idaho State Tax Commission, using form ID-FTHB, Beneficiary and Withdrawal Schedule First-time Home Buyer Savings Account. Westmark will also report the dividends earned on the member’s FTHB to the Idaho State Tax Commission. If the member has a joint account, this information will be reported under the Primary Member’s name and Social Security Number.

As the account holder, the member is responsible for maintaining records of all deposits and withdrawals from their FTHB, as well as for declaring penalties for withdrawals that are made for non-eligible expenditures, when filing their Idaho State Income Tax Return. Members must also report any deposit amount in excess of their tax-deductible contributions each year.

Our Member’s Responsibilities

  • Members acknowledge that by opening this First-Time Homebuyers Account they intend to maintain this account as defined by Idaho Law. They also acknowledge that they are solely responsible for ensuring that this account qualifies as a First-Time Homebuyers Account under Idaho Law.
  • Members acknowledge and agree that the credit union has no responsibility for ensuring that this account qualifies as a First-Time Homebuyers Account under Idaho Law and that the credit union has no responsibility for ensuring that any contributions, withdrawals, or other transactions involving this account are consistent with Idaho Law pertaining to the establishment of First-Time Homebuyers Accounts in Idaho.
  • Members also acknowledge and agree that the credit union has no responsibility in determining the tax deductibility or tax deferral of their First-Time Homebuyers Account in Idaho.
  • Members further acknowledge and agree that the credit union is not responsible for the determination of whether or not withdrawals from this account and expenditures of those funds are for the purposes authorized under Idaho Law which governs First-Time Homebuyers Accounts.
  • Members agree that if any taxes or penalties become due and owing by virtue of their contributions, withdrawals, or transactions on their First-Time Homebuyers Account, they have the sole responsibility to report and pay such amounts. The credit union will not be responsible for withholding taxes or penalties which may be incurred on their account, with the exception of the credit union’s withholding duties existing under federal law.
  • Members agree to consult their tax advisor or legal advisor with regard to any tax or legal questions they may have with regard to the establishment of and operation of this account.