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The mortgage interest credit is designed for lower- to moderate-income earners to help them afford homeownership. Individuals who qualify for the mortgage interest credit can claim the credit each year for part of the mortgage interest paid.
What is Form 1098-T. In accordance with the Tax Relief Act of 1997 and IRS regulations, MCC provides eligible students with Form 1098-T. Using this information, you can determine if you qualify to receive a tax deduction based on what was paid out-of-pocket.
A mortgage credit certificate (MCC) is issued to first-time homebuyers by their state or local government, allowing them to claim a federal tax credit \u2014 the mortgage interest credit \u2014 worth a portion of the mortgage interest they paid, up to $2,000.
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.
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.
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The MCC tax credit remains in place for the life of the mortgage, so long as the residence remains the borrower's principal residence. The total MCC tax credit for each year cannot exceed the recipient's total federal income tax liability for that year, after accounting for all other credits and deduc tions.
The 1098-T, Tuition Statement form reports tuition expenses you paid for college tuition that might entitle you to an adjustment to income or a tax credit. Information on the 1098-T is available from the IRS at Form 1098-T, Tuition Statement.
Credit certificate means a title conferred upon a student by a community college district upon completion of a coherent list of academic credit courses, which is less than the requirement for an associate degree.
The Mortgage Credit Certificate Program, authorized by Congress in the Tax Reform Act of 1984, provides financial assistance to "First time homebuyers" for the purchase of new or existing single-family home.
If your state has an MCC program and you are eligible for it, you will apply when you take out a mortgage loan. You must go through a participating lender that's been approved by the state Housing Finance Authority. Since not all states offer MCCs, checking out first-time homebuyer programs is a good place to start.

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