PDF document

- 1 -

                                                      Mortgage Interest Credit                                                                        OMB No. 1545-0074
Form 8396                                     (For Holders of Qualified Mortgage Credit Certificates Issued by   
                                                  State or Local Governmental Units or Agencies) 
                                                                                                                                                      2023
Department of the Treasury                            Attach to Form 1040, 1040-SR, or 1040-NR.                                                       Attachment   
Internal Revenue Service                        Go to www.irs.gov/Form8396 for the latest information.                                                Sequence No. 138
Name(s) shown on your tax return                                                                                     Your social security number 

Enter the address of your main home to which the qualified mortgage certificate relates if it is different from the address shown on your tax return. 

Name of Issuer of Mortgage Credit Certificate             Mortgage Credit Certificate Number                         Issue date 

Before you begin Part I, figure the amounts of any of the following credits you are claiming: credit for the elderly or the disabled, 
alternative motor vehicle credit, and qualified plug-in electric drive motor vehicle credit.
Part I  Current Year Mortgage Interest Credit 

1    Interest paid on the certified indebtedness amount. If someone else (other than your spouse if filing 
     jointly) also held an interest in the home, enter only your share of the interest paid  .     .   . .       . . . 1 

2    Enter the certificate credit rate shown on your      Mortgage Credit Certificate.Do not       enter the interest 
     rate on your home mortgage               . . .   . . . . . .  .  .   . . . .            . . . .   . .       . . . 2                                               % 

3    If line 2 is 20% or less, multiply line 1 by line 2. If line 2 is more than 20%, or you refinanced your 
     mortgage and received a reissued certificate, see the instructions for the amount to enter  .               . . . 3 
     You must reduce your deduction for home mortgage interest on Schedule A (Form 1040) by the 
     amount on line 3.
4    Enter any 2020 credit carryforward from line 16 of your 2022 Form 8396  .               . . . .   . .       . . . 4 

5    Enter any 2021 credit carryforward from line 14 of your 2022 Form 8396  .               . . . .   . .       . . . 5 

6    Enter any 2022 credit carryforward from line 17 of your 2022 Form 8396  .               . . . .   . .       . . . 6 

7    Add lines 3 through 6  .        . .      . . .   . . . . . .  .  .   . . . .            . . . .   . .       . . . 7 

8    Limitation based on tax liability. Enter the amount from line 3 of the Credit Limit Worksheet in the
     instructions  .        .    . . . .      . . .   . . . . . .  .  .   . . . .            . . . .   . .       . . . 8 

9    Current year mortgage interest credit. Enter the smaller of line 7 or line 8. Also include this amount 
     on Schedule 3 (Form 1040), line 6g  .            . . . . . .  .  .   . . . .            . . . .   . .       . . . 9 
Part II Mortgage Interest Credit Carryforward to 2024 (Complete only if line 9 is less than line 7.) 

10   Add lines 3 and 4           . . . .      . . .   . . . . . .  .  .   . . . .            . . . .   . .       . . . 10 

11   Enter the amount from line 7.            . . .   . . . . . .  .  .   . . . .            . . . .   . .       . . . 11 

12   Enter the larger of line 9 or line 10 .      .   . . . . . .  .  .   . . . .            . . . .   . .       . . . 12 

13   Subtract line 12 from line 11 .          . . .   . . . . . .  .  .   . . . .            . . . .   . .       . . . 13 

14   2022 credit carryforward to 2024. Enter the smaller of line 6 or line 13 .              . . . .   . .       . . . 14 

15   Subtract line 14 from line 13 .          . . .   . . . . . .  .  .   . . . .            . . . .   . .       . . . 15 

16   2021 credit carryforward to 2024. Enter the smaller of line 5 or line 15 .              . . . .   . .       . . . 16 

17   2023 credit carryforward to 2024. Subtract line 9 from line 3. If zero or less, enter -0-         . .       . . . 17 
For Paperwork Reduction Act Notice, see your tax return instructions.                          Cat. No. 62502X                                        Form 8396 (2023)

- 2 -

Enlarge image

Form 8396 (2023) Page 2

General Instructions Specific Instructions
Future Developments Part I—Current Year Mortgage Interest Credit
For the latest information about developments related to Form 8396 Line 1
and its instructions, such as legislation enacted after they were Enter the interest you paid during the year on the loan amount
published, go to www.irs.gov/Form8396. (certified indebtedness amount) shown on your MCC. In most
Purpose of Form cases, this will be the amount in box 1 on Form 1098, Mortgage
Use Form 8396 to figure the mortgage interest credit for 2023 and Interest Statement, or on a similar statement you received from your
any credit carryforward to 2024. mortgage holder. If the loan amount on your MCC is less than your
total mortgage loan, you must allocate the interest to determine the
Who Can Claim the Credit part that relates to the loan covered by the MCC. See Pub. 530 for
You can claim the credit only if you were issued a qualified an example of how to allocate the interest.
Mortgage Credit Certificate (MCC) by a state or local governmental Line 2
unit or agency under a qualified mortgage credit certificate The certificate credit rate cannot be less than 10% or more than
program. 50%.
Homestead Staff Exemption Certificates, and certificates Line 3
issued by the Federal Housing Administration,
▲! Department of Veterans Affairs, and Farmers Home If you refinanced, see Refinanced Mortgage on this page.
CAUTION Administration, do not qualify for the credit. If the certificate credit rate shown on line 2 is more than 20%,
The home to which the certificate relates must be your main multiply line 1 by line 2, but do not enter more than $2,000 on line 3.
home and must also be located in the jurisdiction of the If you and someone else (other than your spouse if filing jointly) held
governmental unit that issued the certificate. an interest in the home, the $2,000 limit must be allocated to each
If the interest on the mortgage was paid to a related person, you owner in proportion to the interest held. See Dividing the Credit in
cannot claim the credit. Pub. 530 for an example of how to make the allocation.
Reduction of home mortgage interest deduction on Schedule A
Refinanced Mortgage (Form 1040). If you itemize your deductions on Schedule A, you
You can refinance your mortgage without losing this credit if your must reduce the amount of home mortgage interest you would
existing MCC is reissued and the reissued certificate meets all of otherwise deduct on Schedule A by the amount on Form 8396, line
the following conditions. 3, and report the reduced amount on Schedule A. You must do this
• It must be issued to the holder(s) of the existing certificate for the even if part of the amount on line 3 is carried forward to 2024.
same property.
• It must entirely replace the existing certificate. The holder cannot Line 8—Credit Limit Worksheet
retain any portion of the outstanding balance of the existing Keep for Your Records
certificate.
• The certified indebtedness on the reissued certificate cannot 1. Enter the amount from Form 1040, 1040-SR,
exceed the outstanding balance shown on the existing certificate. or 1040-NR, line 18 . . . . . . . . 1.
• The credit rate of the reissued certificate cannot exceed the credit 2. Form 1040 or Form 1040-SR filers: Enter
rate of the existing certificate. the total of all amounts (if any) from Form
• The reissued certificate cannot result in a larger amount on line 3 1040 or 1040-SR, line 19*; Schedule 3 (Form
than would otherwise have been allowable under the existing 1040), lines 1 through 4, 6d, 6f, 6l, and 6m;
certificate for any tax year. and Form 5695, line 32**.
For each tax year, you must determine the amount of credit that Form 1040-NR filers: Enter the total of all
you would have been allowed using your original MCC. To do this, amounts (if any) from Form 1040-NR, line
multiply the interest that was scheduled to be paid on your original 19*; Schedule 3 (Form 1040), lines 1, 2, 4,
mortgage by the certificate rate on your original MCC. The result 6f, 6l, and 6m; and Form 5695, line 32** . . 2.
may limit your line 3 credit allowed when you have a reissued MCC, 3. Subtract line 2 from line 1. Enter this amount
even if your new loan has a lower interest rate. on Form 8396, line 8. If zero or less, enter
If the certificate credit rates are different in the year you -0- here and on Form 8396, lines 8 and 9,
refinanced, attach a statement showing separate calculations for and go to Part II of Form 8396 . . . . . 3.
lines 1, 2, and 3 for the applicable parts of the year when the
original MCC and the reissued MCC were in effect. Combine the * If you are directed to complete Form 8396 by Credit Limit
amounts from both calculations for line 3. Enter that total on line 3 Worksheet B in the Instructions for Schedule 8812 (Form 1040),
of the form and enter “see attached” on the dotted line next to include the amount from line 14 of Credit Limit Worksheet B instead
line 2. of the amount from Form 1040, 1040-SR, or 1040-NR, line 19.
For more details, see Regulations section 1.25-3(p). ** If applicable.
Recapture of Credit Part II—Mortgage Interest Credit Carryforward to 2024
If you buy a home using an MCC and sell it within 9 years, you may If the amount on line 9 is less than the amount on line 7, you may
have to recapture (repay) some of the credit. See Pub. 523, Selling have an unused credit to carry forward to the next 3 tax years or
Your Home; and Form 8828, Recapture of Federal Mortgage until used, whichever comes first. The current year credit is used
Subsidy. first and then the prior year credits, beginning with the earliest prior
year.
Additional Information
If you have any unused credit to carry forward to 2024, keep a
See Pub. 530, Tax Information for Homeowners, for more details. copy of this form to figure your credit for 2024.
If you are subject to the $2,000 credit limit because your
certificate credit rate is more than 20%, no amount over
▲! the $2,000 limit (or your prorated share of the $2,000 if
CAUTION you must allocate the credit) may be carried forward for
use in a later year.

PDF file checksum: 3654182608

(Plugin #1/9.12/13.0)