Any information on the mortgage interest tax credit?
A mortgage interest credit is available for first-time home buyers whose income is generally below the median income for the area where they live. The credit is intended to help lower-income individuals afford home ownership. A tax credit is allowed each year for part of the home mortgage interest they pay. Any mortgage interest deduction is reduced by the amount of the credit taken. See our section on Individual Income Tax for more details.
To be eligible for the credit, you must get a 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. You must contact the appropriate government agency about getting an MCC before you get a mortgage and buy your home.
The MCC will show the certificate credit rate you will use to figure your credit. It will also show the certified indebtedness amount on which the interest is eligible for the credit. To claim the credit, complete Form 8396, Mortgage Interest Credit, and attach it to your Form 1040.
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