Mortgage Interest Credit

[csimons]

I have a client claiming this credit for the 4th year.  Live in CA.  Have been able to deduct 20% of their mortgage interest.  This year they were sent a refund check minus the mortgage interest credit of $3,036.  The tax software rules allows for this, what am I missing or why would the IRS not honor this part of refund?  Has Tax Reform affected this?  I can't find anything to say it has and I would assume the software would be updated it did.

[mdavolio · Accepted solution]

Hi,

You can carry forward the unused portion of the Mortgage Interest Credit to the following 3 years or until used, whichever comes first.  Please refer to page 9 of IRS Publication 530: https://www.irs.gov/pub/irs-pdf/p530.pdf

Thank you,

Mike D'Avolio

Intuit

[Just-Lisa-Now-]

MCC is 20% of XX% thats shown on the mortgage interest certificate...its not 20% of the entire amount of interest....do you have a copy of the original Mortgage credit certificate?