What is the schedule hbc first time second chance homebuyer savings account deduction

If you are referring to the Alabama first time and second chance home buyer savings account, see this discussion for details and this Alabama Department of Revenue webpage.

Alabama residents who have not owned or purchased individually or jointly a home 10 years prior to the purchase of the first-time home in Alabama may now take a deduction for contributions made to a first-time and second chance home buyer savings account. Individuals must open an account with a financial institution which is designated as a first-time and second chance home buyer savings account on or after January 1, 2019. Only the account holder(s) are eligible for a deduction. Individuals or organizations that contribute to an account on behalf of the taxpayer will not be eligible for any deductions for the contribution. The funds must be used by December 31 of the fifth year to purchase a home in Alabama or the entire funds balance must be included in the account holder’s income. 

Taxpayers must maintain and submit annually with their return any supporting documentation provided by the financial institution for the account. Funds withdrawn for reasons other than to purchase a first-time home will require the taxpayer to include both the entire balance of the fund, including any accumulated earnings, in income in the year of withdrawal and a penalty equal to 10% of the amount withdrawn. Any earnings on the account are not taxable if used for the purchase of a first home in Alabama. Schedule HBC needs to be completed along with specific documentation.

According to the TurboTax forms availability tool, Alabama Schedule HBC is currently available.