The Kentucky Home Buyer Tax Credit is available on your current year tax return. However, due to the 2018 tax reform brought about by the Tax Cuts and Jobs act, middle income homeowners may no longer see an increase in their refund. This is due to the standard deduction being increased which will allow less taxpayers to itemize on their returns.
If you qualify for the credit, you should have a mortgage certificate that was issued to you by the state. For information on eligibility and how to obtain a certificate, see the MCC Public Notice.
You will enter the information from the certificate by visiting:
- Federal Section
- Deductions
- Credits
- Mortgage Interest Credit
- Credit Certificate
After making the entry from the certificate, the remaining amount of interest (line 1 minus line 9, Form 8396), would be manually entered as an itemized deduction (if you are able to itemize) on the return. To make the manual entry, go to:
- Federal Section
- Deductions
- Itemized Deductions
- Mortgage Interest and Expenses
- Mortgage Interest Reported on Form 1098
- Add Interest & Points Paid