Form 8396: Mortgage Interest Credit
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Form 8396: Mortgage Interest Credit

For lower-income taxpayers seeking to become homeowners, they may be eligible for a tax credit available through Form 8396, which is used to claim a credit for a portion of the mortgage interest paid during a tax year. The form must be completed and attached to the taxpayer’s federal income tax return, and all information must be accurate to be eligible for the credit, which is issued through a Mortgage Credit Certificate program.

What is Form 8396?

Form 8396 (Mortgage Interest Credit) is designed to help lower-income taxpayers afford homeownership, and claim a tax credit for a portion of the mortgage interest paid during a tax year. To be eligible, homeowners must be issued a qualified Mortgage Credit Certificate (MCC) by a state or local governmental unit or agency under a qualified mortgage credit certificate program. The form must be completed in full and signed, with all information accurate, and filed with the taxpayer’s federal income tax return, by the due date of the return, including extensions.

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IRS Form 8396 – Who Needs to Fill It Out?

Form 8396 (Mortgage Interest Credit) must be completed and attached to a taxpayer’s federal income tax return to claim the mortgage interest credit for qualified home buyers. Eligibility for the credit requires receipt of a qualified Mortgage Credit Certificate (MCC) issued by a state or local governmental unit or agency and certain income requirements. Signing and dating the form, ensuring all information is accurate, and filing the form by the due date of the return, including any extensions, are also required.

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Step-by-Step: Form 8396 Instructions For Filling Out the Document

To properly fill out Form 8396, taxpayers must use the instructions provided by the IRS on the form. Make sure to provide all required information accurately and completely, including the name and address of the issuing agency, the certificate number, the balance owed on the mortgage, and the mortgage interest paid for the taxable year. Additionally, make sure to provide all other requested information, to sign the form, and to include it as part of their federal tax return. Finally, taxpayers must ensure that the form is filed before the due date of their federal tax return, including extensions.

Below, we present a table that will help you understand how to fill out Form 8396.

Information Required for Form 8396 Details
Mortgage Interest Deduction Providing information about the issuing agency, certificate number, and mortgage details
Filing Deadline Filing before the due date of the federal tax return

Do You Need to File Form 8396 Each Year?

Yes, Form 8396 must be filed in order to claim the mortgage interest credit each year. All information must be accurate, signed, and dated, and the form must be filed by the due date of the return, including extensions. Form 8396 must be completed and attached to the taxpayer’s federal income tax return to figure out the amount of the credit for the tax year. Additionally, the form must be used to report the amount of the credit that was claimed in prior years. ​1​, ​2​, ​3​, ​4​, and ​5​ refer to the Footnote References.

Download the official IRS Form 8396 PDF

On the official IRS website, you will find a link to download Form 8396. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 8396

Sources:

https://www.irs.gov/forms-pubs/about-form-8396

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