How to generate Form 8396 in Lacerte

This article will assist you with generating Form 8396, Mortgage Interest Credit, in the Individual module of Lacerte.

To generate Form 8396 in the program:

1. Go to Screen 38.2, EIC, Residential Energy, Other Credits.
2. Using the Section List in the lower-left, select the Mortgage Interest Credit section.
3. Enter the Name of issuer.
4. Enter the Certificate number.
5. Enter the Issue date.
6. Enter the Interest paid on certified indebtedness.
7. Enter the Certificate credit rate (xx.xxxx).
8. Enter Percentage of ownership if not 100% (.xxxx)  If the entry in Certificate Credit Rate is greater than 20%, the program multiplies this entry by the maximum allowable credit
9. In the subsection Mortgage Interest Credit Carryover, enter your prior year carryovers as applicable
10. The field Mortgage interest credit (8396)[O] can be used to override the program's calculation.

Note:  When this field is utilized, you must manually prepare and attach Form 8396 for the amounts entered.  The program includes this amount in the Credits section of Form 1040.  If you override the mortgage interest credit, you must manually adjust home mortgage interest on Schedule A.