May 1 is National New Homeowners Day, a celebration of the achievement that comes with buying a first home. Recognizing the challenges many face on the path to homeownership, Kansas lawmakers created First-Time Home Buyer (FTHB) Savings Accounts to help residents save for that milestone.

These accounts allow individuals to set aside money specifically for the purchase of a first home, either for themselves or a designated beneficiary. Eligible account holders include Kansans who have never owned a primary residence or have not been listed on a property title for at least three consecutive years following a divorce.

To open an account, individuals can work with any qualifying financial institution in Kansas, such as banks, credit unions, or insurance companies. Once opened, the account must be designated as a FTHB Savings Account by reporting it on Schedule FHBS with the Kansas Department of Revenue during state income tax filing.

Tax benefits include deductions of up to $3,000 for individual filers or $6,000 for joint filers each year, making these accounts a valuable tool for future homeowners.