Can I deduct a Mortgage Interest Credit on my tax return?
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You may be able to
deduct a
mortgage interest credit on your tax return against your federal income tax if you were issued a
mortgage interest credit certificate by a state or local government. Generally, a qualifying
principal residence may not cost more than 90% of the average area purchase price; or 110%
in certain targeted areas. The mortgage interest credit equals the interest paid multiplied by the
mortgage interest credit certificate rate set by the government issuing the
mortgage interest credit certificate. The maximum annual
mortgage interest credit
is $2,000. Use Form 8396, Mortgage
Interest Credit, to figure the amount of your mortgage interest credit
on your tax return. Individuals who claim the
mortgage interest credit must reduce
their mortgage interest tax deduction by the amount of the mortgage interest
credit on their tax return. |
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Related information
about the Mortgage Interest Credit |
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| Tax Credits |
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IRS publications about
the Mortgage Interest Credit:
See IRS Publication 936,
Home Mortgage Interest Deduction. Also see IRS Publication 17, Your Federal
Income Tax. |
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Ask Julian Block your IRS and tax questions! |
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If you can't find the answer to your IRS or tax question in our
web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To
call Julian for a tax consultation click
here. |
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