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HOMEOWNERS GET A LITTLE EXTRA CREDIT

Mortgages do provide homeowners with a little credit – Mortgage Interest Credit to be exact.  Check out Form 8396, Mortgage Interest Credit.  According to the IRS:

Mortgage Interest Credit

The mortgage interest credit is intended to help lower income individuals afford home ownership. If you qualify, you can claim the credit each year for part of the home mortgage interest you pay on Form 8396. Who qualifies. You may be eligible for the credit if you were issued a qualified Mortgage Credit Certificate (MCC) from your state or local government. Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. The MCC will show the certificate credit rate you will use to figure your credit. It also will show the certified indebtedness amount. Only the interest on that amount qualifies for the credit. You must contact the appropriate government agency about getting an MCC before you get a mortgage and buy your home. Contact your state or local housing finance agency for information about the availability of MCCs in your area.

How to claim the credit:

To claim the credit, complete Form 8396 and attach it to your Form 1040 or Form 1040NR. Include the credit in your total for Form 1040, line 53, or Form 1040NR, line 50; be sure to check box c and write “Form 8396” on that line.

Questions about Mortgages:

If you have any questions about refinancing your current mortgage or getting a new mortgage in connection with purchasing a home, feel free to reach out to Bob Cahill, Senior Mortgage Banker at Leader Bank, N.A. at rcahill@leaderbank.com. At my firm, we frequently refer our clients with mortgage needs to Bob.

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