Question about Mortgage Credit Certificate (Form 8396 - Mortgage interest credit)

[vap2016]

My tax liability is ~$600, with ~$5,000 self employment taxes due. My MCC is a bit over $1,000. How come at the end of filling it out, it is said that I am not eligible for it this year. The full credit gets carried over to next year.

I don't understand why it doesn't apply to my taxes due this year, or at least to my fed taxes of ~$600.

(Does MCC not work on self employment taxes?)

[MaryK4]

Yes, the MCC can only be applied to Income Tax liability, not Employment taxes. For more details, go to  Mortgage Tax Credit Certificate (MCC).