I can't tell you how often I open my past clients' tax returns during a review for a new transaction and realize that they never filed for their Mortgage Tax Credit.

When I ask why, it's' common to hear, "What tax credit??"

Folks, this is essentially free money. And this is your reminder to claim it.

Unlike your mortgage interest expense deduction, which reduces your taxable income, the Mortgage Credit Certificate is a Tax Credit, and it reduces your tax liability – dollar for dollar, every year, for as long as you live in the home.

Since the tax credit is equal to 10% to 20% (depending on the program) of your mortgage interest, it can be substantial—especially if you obtained your mortgage during the recent period of high interest rates. Some recipients receive an annual (that means EVERY YEAR, people) tax credit of $3,000 to $8,000 or more, depending on their loan amount and interest rate. 

This is your reminder. Find that Certificate and claim your tax credit.   

I'm not sure if you Lender secured this for you. Check your settlement package for any reference. 

Have you secured it but can't find your Certificate? If so, contact your Lender for help obtaining a copy.

Ok, I can hear some of you thinking, "Oh crap, I am a recipient of MCC but obtained it 3 years ago and have not filed for it. Have I lost it??" Speak with your Tax Preparer – they might be able to file amended returns and claim your " Found Money."

One last comment: If you are an MCC beneficiary and refinanced your original mortgage, you must submit an MCC Reisuance Application before you can apply for your tax credit again. The forms are available online from the MCC Administrator.

If you have any questions, speak to your trusted Lender.