To figure your credit, use Form 8396: Mortgage Interest Credit. If you do both of the following, you must deduct the amount of this credit from your mortgage interest deduction:
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If both of these are true, you are eligible for the mortgage interest credit:
To figure your credit, use Form 8396: Mortgage Interest Credit. If you do both of the following, you must deduct the amount of this credit from your mortgage interest deduction:
To learn more, see Form 8396 at www.irs.gov.
If you need assistance managing an estate, we can help. H&R Block can help you prepare taxes for a loved one who has passed away.
Learn more about the five most popular tax deductions with the help of the professionals at H&R Block, from retirement account contributions to self-employment expenses.
With the help of the professionals at H&R Block, go through your list of life events to see how each can affect your tax return, such as getting married, having a baby, or purchasing a home.
Learn the ins and outs of deducting non-cash charitable contributions on your taxes from the pros at H&R Block if you’re donating household items to your favorite charity.
FAQ
What is mortgage interest credit 8396?
Homeowners use Internal Revenue Service (IRS) Form 8396 to submit claims for the mortgage interest deduction. The mortgage interest credit’s purpose is to make homeownership more affordable for lower-income taxpayers.
Is Form 8396 the same as 1098?
The Form 1098 you receive from your bank or other financial institution for mortgage interest paid and the Form 8396 Mortgage Interest Credit are two different documents. Holders of Qualified Mortgage Credit Certificates issued by state or local governmental bodies or organizations must use Form 8396.
Who gets a Form 8396?
Use Form 8396 to calculate: Your mortgage interest credit for the current year if you received a qualified Mortgage Credit Certificate (MCC) from a state or local governmental unit or agency as part of a qualified mortgage credit certificate program.
What certificate qualifies for the mortgage interest credit?
MCCs are directly given to qualified homebuyers, who are then able to claim a federal tax credit that is nonrefundable and equal to a certain percentage of the interest they pay on their mortgage loans each year. When borrowers file their tax returns, they can claim these tax credits.