What is the difference between the "Mortgage Interest, Refinancing, and Insurance (Form 1098)" section and "Mortgage Interest Credit Certificate" section?

[cttaxer]

In order to report my mortgage interest credit for the current year, do I fill in the "Mortgage Interest, Refinancing, and Insurance (Form 1098)" section? Or the "Mortgage Interest Credit Certificate" section? Or both?

Note: Both of these sections are located in the "Deductions and Credits" section.

[LisaBr · Accepted solution]

To report the Mortgage Interest paid from a 1098, report as follows:

1.  Go to Federal.

2.  Select Deductions and Credits.

3.  Select Your Home.

4.  The first choice in this section is Mortgage Interest, Refinancing and Interest (1098).

You will enter the information from your 1098 form in this area.

A Mortgage Interest Credit Certificate is not common  since most people don't have this certificate. If you have it, you would have gotten it from your state or local government at the time you bought (or refinanced) your home.  If you qualify, you can claim this credit each year based on a portion of your home mortgage interest.  We’ll automatically subtract the mortgage interest credit amount from your home mortgage interest deduction, so don't be alarmed if you see that you don't get all of your home mortgage interest as a deduction.

[cttaxer]

What about the other section - Mortgage Interest Credit Certificate? Do I report this as well and enter in my certificate information, etc.?

[LisaBr]

If you have a Mortgage Interest Credit Certificate from your state or local government, you will enter that too.  You will need to enter Mortgage Interest and the Credit Certificate.  TurboTax will adjust your Mortgage Interest to reflect your Credit Certificate.

[cttaxer]

Ok. Got it. Thanks!

[vakgfk]

entered 1098 informtio, but interest certificate also show the same number but ignors clicking the button for I don't have a certificate

[DawnC]

If you do not have a Mortgage Credit Credit Certificate (MCC) but it is showing up in TurboTax, you will need to delete Form 8396.  Type mcc into the search bar and use the Jump to link to be taken directly to the entry screen.  

• If you are using the Online software, you will see the summary and MCC(s) you have entered and can click on the trash can icon (delete button) to remove the MCC(s).
• If you are using Desktop software, click on Forms in the upper right-hand corner.  You should be taken to Form 8396 (if not, find it in the list).  Use the Delete Form button at the bottom to remove the form and credit from your return.  

@vakgfk

[OhhTaxes]

I do have a Mortgage Interest Credit Certificate.

In TTDeluxe, there is a field for 'mortgage interest.' Do I enter my entire mortgage interest shown on my 1098, and TT will calculate the percentage of the deduction based on the credit rate %? OR, do I have to calculate the mortgage interest?

[DawnC]

The is a place in the Your Home section to enter your Mortgage Interest Credit Certificate.   You can also search for mcc to be taken directly to the entry screen.  @OhhTaxes

Enter the 1098 in the Mortgage Interest, Refinancing section and enter the MCC in the Mortgage Interest Credit Certificate section.   

[OhhTaxes]

Yes, thank you. And in that section there are fields for

• Mortgage Interest
• Credit Rate %

SO, do I enter my entire mortgage interest as shown on my 1098 and let TTDeluxe calculate the amount I get a credit for based on my credit rate %, or do I need to calculate it and enter into the 'mortgage interest' field?

[Critter-3]

Follow the interview screens and enter what it asks for even if you have already entered the info already.  If the program did NOT want the info a second time it would say so.