Where do I enter Mortgage Interest Credit (Form 8396)?
Menu Path: Deductions/Credits > Other Deductions/Credits > Mortgage Credit Certificate (MCC)
The Mortgage Interest Credit is intended to help lower-income individuals afford home ownership. If you qualify, you can claim the credit on Form 8396 each year for part of the home mortgage interest you pay.
You may qualify for the credit if you were issued a qualified Mortgage Credit Certificate (MCC) from your state or local government when you first purchased or refinanced your home. The MCC will show the certificate credit rate and certified indebtedness amount.
The home to which the certificate relates must be your main home and also must be located in the jurisdiction of the governmental unit that issued the certificate.
If the interest on the mortgage was paid to a related person, you cannot claim the credit.
If you itemize your deductions, we'll automatically subtract the Mortgage Interest Credit from your home mortgage interest deduction because you can't take both a credit and a deduction on the same amount of mortgage interest.
If you purchase a home using an MCC, and you sell that home within 9 years, you may have to recapture (repay) all or part of the benefit you received from the MCC program. You can do that in the Misc section:
Menu Path: Misc > Other Taxes > Miscellaneous Recapture Taxes
The Mortgage Interest Credit is intended to help lower-income individuals afford home ownership. If you qualify, you can claim the credit on Form 8396 each year for part of the home mortgage interest you pay.
You may qualify for the credit if you were issued a qualified Mortgage Credit Certificate (MCC) from your state or local government when you first purchased or refinanced your home. The MCC will show the certificate credit rate and certified indebtedness amount.
The home to which the certificate relates must be your main home and also must be located in the jurisdiction of the governmental unit that issued the certificate.
If the interest on the mortgage was paid to a related person, you cannot claim the credit.
If you itemize your deductions, we'll automatically subtract the Mortgage Interest Credit from your home mortgage interest deduction because you can't take both a credit and a deduction on the same amount of mortgage interest.
If you purchase a home using an MCC, and you sell that home within 9 years, you may have to recapture (repay) all or part of the benefit you received from the MCC program. You can do that in the Misc section:
Menu Path: Misc > Other Taxes > Miscellaneous Recapture Taxes
