Are contributions to a First-Time Home Buyer Account tax deductible?

Yes, contributions made by a taxpayer to first-time home buyer account during the tax year may qualify for a deduction from Michigan taxable income to the extent they were not deducted in determining adjusted gross income (AGI). However, the contributions must be netted against qualified withdrawals made in the same year for a total deduction up to $5,000 on a single or married filing separate return or $10,000 on a jointly filed return.