I have a Mortgage Credit Certificate for North Carolina. Does TurboTax know to cap the MCC credit at NC's max amount of $2,000? It didn't ask me what state it's for.

[carolina-ruby]

I'm just wondering because I know many states don't cap the total amount. It also isn't summing the interest I paid between the two lenders who have serviced my loan.

[MarilynG]

Did you enter two 1098's for the two lenders that serviced your loan?  TurboTax should add the interest from both together.  You can check the MORTGAGE DEDUCTION SUMMARY to be sure they are both entered, and Edit or Add from there (see screenshot). 

You can go to DEDUCTIONS & CREDITS or use the Search to get there, or use Forms mode to check or add for the second lender.

For your MCC, TurboTax asked for the address of the home that qualified (see screenshot) when you entered the MCC info.  The State tax portion of TurboTax will make any necessary limitations based on your filing address if you did not enter a different address here. 

[carolina-ruby]

Hi Marilyn - thanks for your help. I've attached a screenshot to the original question. I do have both lenders already in TurboTax. It only appears to be counting the first one for the MCC.

[MarilynG]

ok, thanks!  Click Update.. there is a screen asking if you have at least two mortgage credit certificates. I will attach to original answer.

[carolina-ruby]

I see, thank you. To make sure I understand - is this done any/every time the loan is sold to a new servicer, even though a new certificate isn't issued?

[MarilynG]

No, usually only on the first loan.  Only enter the MCCs you received.

[carolina-ruby]

I have only received one MCC. I didn't refinance, the loan was just sold to a new servicer. Is there a way to tell TurboTax to add the interest for both servicers even though it's just one MCC?

[MarilynG]

You need to contact 2nd servicer to see if they will issue you an MCC.

[carolina-ruby]

Thank you, I'll check with the original lender about this. The MCC says I only need to request a new certificate/review if I refinance, sell, or move out of the house, so my understanding was that the certificate is still valid. Perhaps the loan being sold is considered a refinance.

[carolina-ruby]

Hi - I wanted to follow up with you and tell you that I confirmed with my lender that you are NOT issued a new certificate every time your servicer changes. You only apply for a new MCC if you refinance. The MCC was issued by the NC Housing Agency, not the servicer. It would be great if TurboTax would correct the software in the future to account for this. Thanks again for your help!