The Mortgage Interest Credit is available to individuals that received a Mortgage Credit Certificate (MCC) during the tax year from the state or local government.
If the amount of interest paid is more than the amount of the credit calculated on Form 8396, you can claim an itemized deduction for the remaining amount. To do this within the program:
- Enter the Mortgage Interest Certificate information and calculate the amount of the credit received. You can do this manually or review the PDF for Form 8396, Line 9.
- Go to the Itemized Deductions and reduce the amount of the Mortgage Interest by the amount of the credit shown on Form 8396 (line 9).
If you claim both the Mortgage Interest Credit and the Mortgage Interest Deduction on the same interest, the IRS will disallow the deductions.