The Mortgage Interest Credit is a nonrefundable credit intended to help lower-income individuals own a home. A taxpayer may claim the mortgage interest credit if
a qualified mortgage credit certificate (MCC) was issued by a state or local governmental unit or agency under a qualified mortgage credit certificate program,
the home to which the certificate relates is the taxpayer's main home,
the home is located in the jurisdiction of the governmental unit that issued the certificate, and
the interest on the mortgage was not paid to a related person.
If a taxpayer qualifies, they can take the credit each year for part of the home mortgage interest they pay. The credit is figured on
Form 8396.
Recapture of Credit
To access the Mortgage Interest Credit, from the Federal Section of the tax return select:
- Deductions
- Credits Menu
- Mortgage Interest Credit Form 8396
- Select Credit Certificate or Form 1098 depending on which form the taxpayer received
- Complete all required information as prompted
Unused credit can be carried forward three years.