Mortgage Interest Credit
From Wikicpa
The IRS noticed a number of erroneous claims for Mortgage Interest Credit (Check Box "a", Line 54, Form 1040) in the previous tax year and wants to ensure taxpayers and tax practitioners understand the legal guidelines established for claiming this credit.
During 2005, a large number of claims were made for Mortgage Interest Credit using interest amounts from Form 1098, Mortgage Interest Statement. The interest a taxpayer paid on a mortgage loan reported on Form 1098 may only be claimed as an itemized deduction on Schedule A, Form 1040.
The Mortgage Interest Credit may only be claimed on a taxpayer’s return if that taxpayer received a qualified Mortgage Credit Certificate. This certificate must be issued by a state or local governmental unit or agency under a qualified mortgage credit certificate program. For more detailed information and specific limitations, please see instructions for Form 8396 and/or Publication 530.
