Question regarding Alabama first time and second chance home buyer savings account

[VictoriaD75]

What is your question? Per the website:

First-time homebuyers can now create a tax-free savings account to be used towards the purchase of their first home. This new resource in Alabama is exclusively for first-time buyers or those reentering the housing market if you haven’t owned a home in the last 10 years. 

Individuals or couples can open one of these tax-free savings accounts at any local bank, credit union or other financial institution in Alabama. The principal deposits and earnings will be deductible on your state income taxes. Savings from the account can be used to pay for the down payment and/or closing costs for the purchase of a single-family dwelling.

Alabama Association of Realtors

[cecegrin]

I never opened one but my return says I did. What should I do?

[AmyC]

I am assuming that your return is showing a deduction for saving the money rather than a penalty for cashing it out. Follow these steps:

1. Open your return
2. Edit AL
3. continue through to You've Finished Your Alabama Return
4. Select Income to update/ revisit
5. continue through until you reach First Time Second Chance Homebuyer Accounts
6. Select Yes
7. Make any corrections necessary

@cecegrin

[millerte]

I am having the same issue.   I go to complete my Alabama tax return and it finds an error on Schedule HBC - first time second chance and asks for me to put in my institution.  I never put any information on this and never used this - however, it seems to have pulled in my interest from my 1098 from one of my banks which it completely unrelated.    The box is checked next to "I am claiming a Alabama contribution, interest earned, and/or withdraw for this year", yet I never stated I was claiming anything.  

"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.

? XI am claiming a Alabama contribution, interest earned, and/or withdraw for this year

Something is wong with Turbo Tax ALabama State 

[BrittanyS]

Alabama Department of Revenue has issued the schedule HBC as a known issue on their website.  The revenue department is looking into the issue and will release an update once it has been resolved.  You can watch their current issues page on their website for updates.  Once resolved, you can go back through the interview questions and should be able to move past the question you are seeing.  

Here is a link to the Alabama Department of Revenue's current issue page:

Current Issues

@millerte 

[SEChambers]

I am having this exact same issue. It states in the review that I have one issue that needs to be fixed. The AL first time and second chance Home Buyer saving account. I clicked NO when asked the question but instead it's pulling my other income amount. 

[AmyC]

There are no known issues with the form. If it is showing in your form list, it needs to be removed.  If you are using:

• Online: see How do I view and delete forms in TTO?
•  Desktop: If you are working in the cd/download TurboTax program:
  1. On the top right, there is a FORMS button. 
  2. Click on FORMS.
  3. Locate the form you want to delete.
  4. Click on the form name.
  5. Below the form, bottom left, select DELETE FORM button. 

A full or corrupted cache can cause problems in TurboTax, sometimes you need to clear your cache (that is, remove these temporary files).

For stuck information follow these steps:

Online version:

1. Delete the form/ worksheet- if possible, see How to Delete  
2. Log out of your return and try one or more of the following:
   • Don't use Internet Explorer.
   • Clear cache and cookies,
   • Sign in using a different browser.
   • Sign in using a different device.
3. Log back into your return.

Desktop version: 

1. Delete the form
2. Save your return while closing the program.
3. Update the program
4. Open