How does the Homebuyer realize the increase in “home-buying power”?
The homebuyer may receive the complete MCC credit savings annually at the time they file
their tax returns or monthly by adjusting his or her federal income tax withholding by filing a revised
Form W-4 with his or her employer. By taking this latter action, the number of exemptions will
increase, reducing the amount of taxes withheld and increasing the buyer’s disposable net
Taxpayers who file itemized returns may take a deduction for his or her mortgage interest paid
each year, less the amount equal to the tax credit taken.
In any event, when the homebuyer files his or her taxes each year, they must fill out IRS Form 8396
and attach a copy of their MCC with his or her filed taxes.
This is not intended to be a full explanation, nor an assurance that such information will guarantee
compliance with the tax laws. We encourage the homebuyer to contact their tax advisor or their
employer to help them with the necessary tax forms and, if they so choose, to properly adjust their
tax withholding.

Show All Answers

1. What is an MCC?
2. What is the difference between a “tax credit” and a “tax deduction”?
3. How does the Homebuyer realize the increase in “home-buying power”?
4. What happens if a qualified Homebuyer cannot use the entire amount of the MCC credit?
5. Will a Homebuyer qualify if they are not a First-Time Homebuyer?
6. Can a Homebuyer apply for a MCC after they have closed on their mortgage?
7. What loans types can be used with the MCC?
8. Does the Mortgage Credit work like the Earned Income Credit?
9. Does a Homebuyer lose their credit if they refinance their mortgage?
10. How does the Mortgage Credit Certificate work?
11. How do you figure the tax credit the Homebuyer can receive?
12. Where does a Homebuyer obtain an MCC?
13. How long does the credit certificate last?
14. What are the MCC requirements?
15. What are income and purchase price limits?
16. What kinds of properties are eligible?
17. How does a homebuyer apply for an MCC?