I am putting money into a First-time Home Buyer Savings Accounts in order to deduct from my self-employed income. Where should I do that in TurboTax?

[VolvoGirl]

What is that?  Some kind of savings account?  Is it a state program?  That doesn't sound like anything you could deduct from your self employment income.  It is probably a credit on your state return.  

[DaveF1006]

It depends. This is not a federal deduction or credit but is available as a state deduction in the states of Colorado, Iowa, Minnesota, Mississippi, Montana, Oregon, and Virginia.

To clarify, what state do you live in so we can specifically address how to enter this into your state return? Also, there may be specific requirements within the state that need to be complied with in order to claim the deduction.

[meganhannah56]

Oregon

[meganhannah56]

Oregon. Any word on this?

[SusanY1]

You will enter the amount of your 2020 deposits and earnings into your Oregon First-Time Home Buyer' Savings Account in the state section of the TurboTax program under Misc Adjustments and then First-Time Home Buyer Savings Account Subtraction.  

You should see this section appear near the beginning of the state interview.  

The program will subtract the deposits from the taxable income on the Oregon return.  The maximum amount of the subtraction is $5,000 (or $10,000 for married taxpayers filing jointly.)  The subtraction may be limited by federal adjusted gross income (AGI.) 

Your net earnings from self-employment will become part of your AGI for purposes of determining the amount of your allowable state subtraction, but your federal self-employment tax or federal income tax will not be reduced.