Individual Housing Account Act of 1983

Individual Housing Account Act of 1983 - Amends the Internal Revenue Code to allow an income tax deduction for cash contributions to a savings account established for the benefit of the taxpayer (or the taxpayer and spouse if married) for the exclusive purpose of purchasing the taxpayer's first principal residence. Limits the maximum annual deduction to $4,000, with a maximum lifetime deduction of $20,000. Provides that there is no maximum yearly income for eligibility in the program. Limits to 20 percent the amount of the total yearly contribution which may come from unearned income.

Limits all members of a family to one individual housing account until each member is independent and files separate tax returns. Allows only one account to be applied against the purchase of a single dwelling. Excludes distributions from such account from gross income if they are used exclusively for the purchase of a first principal residence. Provides for recapture of such distribution upon a subsequent sale of the residence if another house is not purchased with the proceeds.