IRS Form 8396 2018 Mortgage Interest Credit (For Holders of Qualified Mortgage Credit Certificates Issued by State or Local Governmental Units or Agencies)

What Is IRS Form 8396?

‚ÄčIRS Form 8396, Mortgage Interest Credit is the document you fill out in order to calculate and claim the tax credit on your mortgage interest for the current tax year, as well as to request the credit extension for the next year. The issuing agency of the form is the Internal Revenue Service (IRS).

The main aim of the credit is to help low- and moderate-income individuals to afford property ownership. The maximum amount of credit you can get is $2,000 per year.

The IRS mortgage interest credit form is revised annually and attached to the IRS Form 1040 or the IRS Form 1040NR before submitting. Download the latest fillable IRS Form 8396 through the link below.

ADVERTISEMENT
8396
Mortgage Interest Credit
OMB No. 1545-0074
2018
Form
(For Holders of Qualified Mortgage Credit Certificates Issued by
State or Local Governmental Units or Agencies)
Go to www.irs.gov/Form8396 for the latest information.
Department of the Treasury
Attachment
138
Internal Revenue Service (99)
Sequence No.
Attach to Form 1040 or 1040NR.
Name(s) shown on your tax return
Your social security number
Enter the address of your main home to which the qualified mortgage certificate relates if it is different from the address shown on your tax return.
Name of Issuer of Mortgage Credit Certificate
Mortgage Credit Certificate Number
Issue Date
Before you begin Part I, figure the amounts of any of the following credits you are claiming: Credit for the elderly or the disabled,
alternative motor vehicle credit, and qualified plug-in electric drive motor vehicle credit.
Part I
Current Year Mortgage Interest Credit
1
Interest paid on the certified indebtedness amount. If someone else (other than your spouse if
1
filing jointly) also held an interest in the home, enter only your share of the interest paid .
.
.
2
Enter the certificate credit rate shown on your mortgage credit certificate. Do not enter the
2
interest rate on your home mortgage .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
%
3
If line 2 is 20% or less, multiply line 1 by line 2. If line 2 is more than 20%, or you refinanced
3
your mortgage and received a reissued certificate, see the instructions for the amount to enter .
You must reduce your deduction for home mortgage interest on Schedule A (Form 1040)
by the amount on line 3.
4
Enter any 2015 credit carryforward from line 16 of your 2017 Form 8396 .
.
.
.
.
.
.
.
4
5
Enter any 2016 credit carryforward from line 14 of your 2017 Form 8396 .
.
.
.
.
.
.
.
5
6
Enter any 2017 credit carryforward from line 17 of your 2017 Form 8396 .
.
.
.
.
.
.
.
6
7
7
Add lines 3 through 6 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8
Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet (see
8
instructions) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
9
Current year mortgage interest credit. Enter the smaller of line 7 or line 8. Also include this
amount in the total on Schedule 3 (Form 1040), line 54, or Form 1040NR, line 51. Check box c on that
9
line and enter “8396” in the space next to that box .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Part II
Mortgage Interest Credit Carryforward to 2019. (Complete only if line 9 is less than line 7.)
10
10
Add lines 3 and 4 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
Enter the amount from line 7 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
12
Enter the larger of line 9 or line 10 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
12
13
13
Subtract line 12 from line 11 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
14
2017 credit carryforward to 2019. Enter the smaller of line 6 or line 13 .
.
.
.
.
.
.
.
14
15
15
Subtract line 14 from line 13 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
16
2016 credit carryforward to 2019. Enter the smaller of line 5 or line 15 .
.
.
.
.
.
.
.
16
17
2018 credit carryforward to 2019. Subtract line 9 from line 3. If zero or less, enter -0- .
.
.
17
8396
For Paperwork Reduction Act Notice, see your tax return instructions.
Form
(2018)
Cat. No. 62502X
8396
Mortgage Interest Credit
OMB No. 1545-0074
2018
Form
(For Holders of Qualified Mortgage Credit Certificates Issued by
State or Local Governmental Units or Agencies)
Go to www.irs.gov/Form8396 for the latest information.
Department of the Treasury
Attachment
138
Internal Revenue Service (99)
Sequence No.
Attach to Form 1040 or 1040NR.
Name(s) shown on your tax return
Your social security number
Enter the address of your main home to which the qualified mortgage certificate relates if it is different from the address shown on your tax return.
Name of Issuer of Mortgage Credit Certificate
Mortgage Credit Certificate Number
Issue Date
Before you begin Part I, figure the amounts of any of the following credits you are claiming: Credit for the elderly or the disabled,
alternative motor vehicle credit, and qualified plug-in electric drive motor vehicle credit.
Part I
Current Year Mortgage Interest Credit
1
Interest paid on the certified indebtedness amount. If someone else (other than your spouse if
1
filing jointly) also held an interest in the home, enter only your share of the interest paid .
.
.
2
Enter the certificate credit rate shown on your mortgage credit certificate. Do not enter the
2
interest rate on your home mortgage .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
%
3
If line 2 is 20% or less, multiply line 1 by line 2. If line 2 is more than 20%, or you refinanced
3
your mortgage and received a reissued certificate, see the instructions for the amount to enter .
You must reduce your deduction for home mortgage interest on Schedule A (Form 1040)
by the amount on line 3.
4
Enter any 2015 credit carryforward from line 16 of your 2017 Form 8396 .
.
.
.
.
.
.
.
4
5
Enter any 2016 credit carryforward from line 14 of your 2017 Form 8396 .
.
.
.
.
.
.
.
5
6
Enter any 2017 credit carryforward from line 17 of your 2017 Form 8396 .
.
.
.
.
.
.
.
6
7
7
Add lines 3 through 6 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8
Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet (see
8
instructions) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
9
Current year mortgage interest credit. Enter the smaller of line 7 or line 8. Also include this
amount in the total on Schedule 3 (Form 1040), line 54, or Form 1040NR, line 51. Check box c on that
9
line and enter “8396” in the space next to that box .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Part II
Mortgage Interest Credit Carryforward to 2019. (Complete only if line 9 is less than line 7.)
10
10
Add lines 3 and 4 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
Enter the amount from line 7 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
12
Enter the larger of line 9 or line 10 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
12
13
13
Subtract line 12 from line 11 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
14
2017 credit carryforward to 2019. Enter the smaller of line 6 or line 13 .
.
.
.
.
.
.
.
14
15
15
Subtract line 14 from line 13 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
16
2016 credit carryforward to 2019. Enter the smaller of line 5 or line 15 .
.
.
.
.
.
.
.
16
17
2018 credit carryforward to 2019. Subtract line 9 from line 3. If zero or less, enter -0- .
.
.
17
8396
For Paperwork Reduction Act Notice, see your tax return instructions.
Form
(2018)
Cat. No. 62502X
2
Form 8396 (2018)
Page
General Instructions
Specific Instructions
Future Developments
Part I—Current Year Mortgage Interest Credit
For the latest information about developments related to Form 8396
Line 1
and its instructions, such as legislation enacted after they were
Enter the interest you paid during the year on the loan amount
published, go to www.irs.gov/Form8396.
(certified indebtedness amount) shown on your MCC. In most
cases, this will be the amount in box 1 on Form 1098, Mortgage
Purpose of Form
Interest Statement, or on a similar statement you received from your
Use Form 8396 to figure the mortgage interest credit for 2018 and
mortgage holder. If the loan amount on your MCC is less than your
any credit carryforward to 2019.
total mortgage loan, you must allocate the interest to determine the
Who Can Claim the Credit
part that relates to the loan covered by the MCC. See Pub. 530 for
an example of how to allocate the interest.
You can claim the credit only if you were issued a qualified
Line 2
Mortgage Credit Certificate (MCC) by a state or local governmental
unit or agency under a qualified mortgage credit certificate
The certificate credit rate can’t be less than 10% or more than 50%.
program.
Line 3
Homestead Staff Exemption Certificates, and certificates
If you refinanced, see Refinanced Mortgage on this page.
!
issued by the Federal Housing Administration,
If the certificate credit rate shown on line 2 is more than 20%,
Department of Veterans Affairs, and Farmers Home
multiply line 1 by line 2, but do not enter more than $2,000 on line 3.
Administration do not qualify for the credit.
CAUTION
If you and someone else (other than your spouse if filing jointly) held
The home to which the certificate relates must be your main
an interest in the home, the $2,000 limit must be allocated to each
home and also must be located in the jurisdiction of the
owner in proportion to the interest held. See Dividing the Credit in
governmental unit that issued the certificate.
Pub. 530 for an example of how to make the allocation.
If the interest on the mortgage was paid to a related person, you
Reduction of home mortgage interest deduction on Schedule A
cannot claim the credit.
(Form 1040). If you itemize your deductions on Schedule A, you
Refinanced Mortgage
must reduce the amount of home mortgage interest you would
otherwise deduct on Schedule A by the amount on Form 8396, line
You can refinance your mortgage without losing this credit if your
3, and report the reduced amount on Schedule A. You must do this
existing MCC is reissued and the reissued certificate meets all of
even if part of the amount on line 3 is carried forward to 2019.
the following conditions.
Line 8—Credit Limit Worksheet
• It must be issued to the holder(s) of the existing certificate for the
same property.
Keep for Your Records
• It must entirely replace the existing certificate. The holder can’t
1. Enter the amount from Form 1040, line 11, or
retain any portion of the outstanding balance of the existing
1.
Form 1040NR, line 45
.
.
.
.
.
.
.
.
certificate.
2. Form 1040 filers: Enter the amounts from
• The certified indebtedness on the reissued certificate can’t exceed
Schedule 3 (Form 1040), lines 48 through 51; line
the outstanding balance shown on the existing certificate.
14 of the Line 14 Worksheet in Pub. 972*; Form
• The credit rate of the reissued certificate can’t exceed the credit
5695, line 30**; Form 8910, line 15; Form 8936,
rate of the existing certificate.
line 23; and Schedule R (Form 1040), line 22.
• The reissued certificate can’t result in a larger amount on line 3
than would otherwise have been allowable under the existing
Form 1040NR filers: Enter the amounts from
certificate for any tax year.
Form 1040NR, lines 46 through 48; line 14 of the
Line 14 Worksheet in Pub. 972*; Form 5695, line
For each tax year, you must determine the amount of credit that
30**; Form 8910, line 15; and Form 8936, line 23. 2.
you would have been allowed using your original MCC. To do this,
multiply the interest that was scheduled to be paid on your original
3. Subtract line 2 from line 1. Enter this amount on
mortgage by the certificate rate on your original MCC. The result
Form 8396, line 8. If zero or less, enter -0- here
may limit your line 3 credit allowed when you have a reissued MCC,
and on Form 8396, lines 8 and 9, and go to Part
even if your new loan has a lower interest rate.
3.
II of Form 8396
.
.
.
.
.
.
.
.
.
.
If the certificate credit rates are different in the year you
refinanced, attach a statement showing separate calculations for
*If you are filing Form 2555 or Form 2555-EZ, enter instead the amount, if
lines 1, 2, and 3 for the applicable parts of the year when the
any, from line 16 of the Child Tax Credit and Credit for Other Dependents
original MCC and the reissued MCC were in effect. Combine the
Worksheet in Pub. 972. If you are not claiming the child tax credit and
amounts from both calculations for line 3. Enter that total on line 3
credit for other dependents, you do not need Pub. 972.
of the form and enter “see attached” on the dotted line next to
**If applicable.
line 2.
Part II—Mortgage Interest Credit Carryforward to
For more details, see Regulations section 1.25-3(p).
2019
Recapture of Credit
If the amount on line 9 is less than the amount on line 7, you may
If you buy a home using an MCC and sell it within 9 years, you may
have an unused credit to carry forward to the next 3 tax years or until
have to recapture (repay) some of the credit. See Pub. 523, Selling
used, whichever comes first. The current year credit is used first and
Your Home, and Form 8828, Recapture of Federal Mortgage
then the prior year credits, beginning with the earliest prior year.
Subsidy.
If you have any unused credit to carry forward to 2019, keep a
Additional Information
copy of this form to figure your credit for 2019.
See Pub. 530, Tax Information for Homeowners, for more details.
If you are subject to the $2,000 credit limit because your
!
certificate credit rate is more than 20%, no amount over
the $2,000 limit (or your prorated share of the $2,000 if
you must allocate the credit) may be carried forward for
CAUTION
use in a later year.

Download IRS Form 8396 2018 Mortgage Interest Credit (For Holders of Qualified Mortgage Credit Certificates Issued by State or Local Governmental Units or Agencies)

731 times
Rate
4.8(4.8 / 5) 37 votes
ADVERTISEMENT

IRS Form 8396 Instructions

You can claim the tax credit on this form only if you have a qualified Mortgage Credit Certificate (MCC) issued by a state or local government agency or unit. The MCC is the document that converts a part of the mortgage interest you pay into a non-refundable tax credit. Note that if you possess the certificate issued by the Department of Veterans Affairs, Federal Housing Administration, or Farmers Home Administration, you are not entitled to this credit. The same applies if you have a Homestead Staff Exemption Certificate.

To be eligible for this credit, you have to meet two more requirements:

  • The home the MCC was issued for must be your primary residence;
  • The home must be within the same jurisdiction as the government agency that provided you with the MCC.

Homeowners itemizing their tax deductions on Schedule A (Form 1040) must reduce their deductions on the amount of credit claimed on this form.

How to Fill out IRS Form 8396?

Use this guide to fill out your IRS 8396 Form properly:

  1. Enter your identification information: name as shown on your tax return form, Social Security number, and the address of the home the MCC was issued for;
  2. Specify the details about the MCC: issuer name, number, and issue date;
  3. Line 1. Provide the amount of the interest you paid on your loan. Your calculations should be based only on the loan amount indicated in your MCC. To specify the amount, look through Box 1 of IRS Form 1098, Mortgage Interest Statement or any other statement sent you by your mortgage holder;
  4. Line 2. Provide the certificate credit rate. Note that it should fit in 10% - 50% limits;
  5. Line 3. If you refinance your mortgage, multiply the interest scheduled on your original mortgage by the rate indicated on your original MCC. If the certificate credit rate you have indicated on Line 2 exceeds 20%, multiply the digits entered on the previous two lines. Keep in mind that you should stick to the $2,000 limit. If you held the interest with any other person, the $2,000 amount will be divided between you in direct proportion to the interest you held;
  6. Lines 4 - 7. Self-explanatory;
  7. Line 8. Use the Credit Limit Worksheet to determine the amount you indicate in this part. Find the Credit Limit Worksheet in the instructions attached to this form. Do not file the worksheet with this credit form, keep it for your records;
  8. Line 9. Enter the amount indicated on Line 7 or on Line 8, whichever smaller;
  9. Part II. Lines 10 - 17. Fill out this part only if the amount indicated on Line 7 exceeds the amount indicated on Line 9. In this case, you may carry forward your unused credit to the following three years or until used. If you carry forward your unused credit, make a copy of this form and keep it for your records. It will help you to calculate your credit for the next year.
Page of 2