Get 2011 Mortgage Credit Certificate Program Guide - In

The tax credit also allows you to reduce the amount you owe in federal taxes. An MCC is especially helpful if you pay a substantial amount of money in mortgage interest. If your interest payments are relatively low, an MCC won't help as much.

Form 8396 Mortgage Interest Credit is separate from Form 1098 Mortgage Interest Statement you receive from your bank or financial institution for mortgage interest paid.

MCCs are issued directly to qualifying homebuyers who are then entitled to take a nonrefundable fed eral tax credit equal to a specified percentage of the interest paid on their mortgage loan each year. These tax credits can be taken at the time the borrowers file their tax returns.

A mortgage credit certificate allows qualifying homeowners to claim a refund for a portion of the interest paid on their mortgage each year, up to $2,000.

A mortgage credit certificate allows qualifying homeowners to claim a refund for a portion of the interest paid on their mortgage each year, up to $2,000.

The formula for figuring the MCC amount is fairly straightforward: Multiply the home loan amount by the mortgage interest rate and the MCC percentage. The MCC percentage is established by the Housing Finance Agency.

Your Mortgage Certificate Number isn't on Form 1098; it's found on a Mortgage Credit Certificate (MCC). You can only claim Mortgage Interest Credit if you've received a Mortgage Credit Certificate issued by a state or local governmental unit or agency under a qualified mortgage credit certificate program.

The MCC is issued through your lender prior to closing on your home. You should request one early in the process, since the lender must have the certificate approved before moving forward. Once the certificate is approved, it's valid for 90 days, so the closing should take place within that time frame.

Certificate Number You will find it on the bottom left of your certificate.