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ewitt1222
New Member

I don't understand why I can't get a refund on my first time buyer MCC

I have my taxes filled out but want to understand before I file
2 Replies
ErnieS0
Employee Tax Expert

I don't understand why I can't get a refund on my first time buyer MCC

The Mortgage Interest Credit for a Mortgage Credit Certificate is a so-called non-refundable credit. That means the credit will help lower your tax liability to $0, but anything left over will be carried over to next year instead of being added to your refund.

 

Look for Form 8396 Mortgage Interest Credit in your tax return. That shows the calculation for your mortgage interest credit. Line 9 shows the amount of credit being used on your tax return. Line 17 shows the credit carried forward to next year.

 

To enter a mortgage credit certificate in TurboTax:

  • Click on Federal
  • Then Deductions & Credits
  • Scroll down to Your Home. Click Show more
  • Start Mortgage Interest Credit Certificate

The MCC program helps lowerincome families afford homes. The program gives a dollarfordollar tax credit for a portion of mortgage interest paid per year, up to $2,000.

ewitt1222
New Member

I don't understand why I can't get a refund on my first time buyer MCC

I think I’m reading this MCC wrong.  Even tho I was unemployed in 2019 @ 2020 I still paid my mortgage which includes my mtg insurance.  It said somewhere in the turbo tax that I could only claim $2000 per year. Since I did pay my mtg interest why can’t I receive what is owed me for 2019 & 2020”? 
i know I had a forbearance for part of 2020. So why can I not get the money for those two years.  I really would like to get the MCC for those two years.  Please advise

 

Thanks for your help with this matter

Erich Wittwer

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