Kansas MCC

[Caelis]

I purchased a new home in Kansas in 1996.  We obtained a MCC and have been filing the 8396 form.  Turbo Tax is telling me that the MCC is not available in 2019.  Did they do away with it?

[KathrynG3]

No, Form 8396, Mortgage Interest Credit is still available for federal returns. See page 2 for the instructions about the Mortgage Credit Certificate.

Go to left menu>Federal>Deductions & Credits>if you do not see Mortgage Interest Credit Certificate listed, click All Tax Breaks>Your Home>Mortgage Interest Credit Certificate and carefully go back through the questions.

Do either of these situations apply to you?

Special circumstances or exceptions

• If you purchase your home and claim the mortgage interest credit, and then sell your home within nine years, you might have to repay some of the credit that you took in prior years. Do this using Form 8828, Recapture of Federal Mortgage Subsidy.
• If you refinance your mortgage, you must have a new mortgage credit certificate (MCC) to claim the credit on the new loan. Also, the new credit amount cannot exceed the original credit amount.