Fill out 8396 (Mortgage Interest Credit) online
Form 8396 is used to claim the Mortgage Interest Credit, a tax credit for homebuyers who received a qualified Mortgage Credit Certificate (MCC) from a state or local government housing finance agency. The credit equals a percentage of the mortgage interest paid during the year, directly reducing your tax liability.
How to fill out 8396 (Mortgage Interest Credit)
Enter MCC information
Enter your Mortgage Credit Certificate number, the date issued, the issuing authority, and the credit rate shown on your MCC (typically 10-50%).
Calculate the credit
Enter the total mortgage interest paid during the year (from Form 1098). Multiply by your MCC credit rate. If the rate exceeds 20%, the annual credit is capped at $2,000.
Apply carryforward if applicable
If you had unused mortgage interest credit from prior years (because the credit exceeded your tax liability), add the carryforward amount to this year's credit.
Reduce your mortgage interest deduction
On Schedule A, reduce your mortgage interest deduction by the amount of the credit claimed on Form 8396. You cannot claim the full deduction and the full credit on the same interest.
About 8396 (Mortgage Interest Credit)
Who needs this form
Homeowners who received a Mortgage Credit Certificate (MCC) from a state or local housing finance agency at the time of their mortgage loan. MCCs are typically issued to first-time homebuyers or buyers in targeted areas with income and purchase price limits.
Where to submit
File with the IRS as part of your annual federal income tax return (Form 1040). Claim the credit on Schedule 3, line 6a.
Source and content freshness
- Filing deadlines may shift for weekends and holidays. Verify due dates with official instructions.
Common mistakes to avoid
- Not reducing your mortgage interest deduction by the amount of the credit (you cannot claim both the full deduction and the credit on the same interest)
- Forgetting that the credit rate comes from your MCC, not from Form 8396 itself
- Not filing Form 8396 every year you pay mortgage interest with an active MCC
- Exceeding the annual credit limit ($2,000 if your MCC credit rate exceeds 20%)
- Failing to recapture the credit if you sell the home within 9 years and your income has increased
Frequently asked questions
Is this form free to fill out?
Yes. SimplePDF lets you fill out any PDF form for free, directly in your browser. No account required. For team and business features, see our pricing plans.
Do I need to create an account?
No. You can fill out and download the form without creating an account or signing up.
Is my data secure?
SimplePDF is not a covered entity under HIPAA. Documents are processed entirely in the user's browser and never transit via SimplePDF's servers, on any plan. Read our privacy policy for more details.
Is this legal, tax, or immigration advice?
No. SimplePDF provides form-filling tools and general informational content, not professional advice. Verify requirements with official instructions or a qualified professional.
Can I share a direct link to this form?
Yes! You can create a direct link to any PDF by prefixing its URL with simplepdf.com/. For example: simplepdf.com/https://example.com/form.pdf. Anyone who opens the link can fill out the form immediately in their browser. You can also embed the editor in your own website.
What is a Mortgage Credit Certificate (MCC)?
A Mortgage Credit Certificate is issued by a state or local housing finance agency to qualifying homebuyers, typically first-time buyers meeting income and purchase price limits. The MCC specifies a credit rate (usually 10-50%) that lets you convert a portion of your mortgage interest into a dollar-for-dollar tax credit each year. MCCs are issued at the time of the mortgage origination and remain valid for the life of the loan as long as you live in the home.
SimplePDF provides a tool to fill out PDF forms. We are not affiliated with any government agency or form issuer. It is your responsibility to verify the accuracy and completeness of any information entered. SimplePDF is not liable for errors, omissions, or consequences resulting from the use of filled-out forms.