A mortgage interest credit certificate (MCC) provides borrowers with an opportunity to subsidize their recurring mortgage payments using federal tax credits. Using an MCC, borrowers may be able to receive a tax credit of up to $2,000 annually. As you can imagine, this can make a huge impact on your short- and long-term financial planning.
If you are closing in on retirement age, an MCC may be an excellent tool for reducing your expenses and ensuring the best possible longevity for your finances. In order to take advantage of the numerous benefits provided by the MCC, you'll have to ensure that you have a valid certificate number that can be used for reporting purposes.
You first have to apply for the MCC through your local or state government. You can expect to get mailed a physical copy that has the certificate number, and you can request a copy if you lose that certificate.
Applying for Your MCC
If you decide that a mortgage interest credit certificate is compatible with your financial situation, you will first need to secure the certificate from your state or local government. This can commonly be accomplished with application forms provided by the relevant government agencies where you live. As part of your application, you will be required to meet a number of requirements focused on income levels, credit scores and loan limits.
There are also a variety of property requirements introduced as part of the MCC application which ensure that your home is fully eligible for this tax subsidy. Some of these include limits on sale price, acreage size and others. It is important to note here that these requirements may differ significantly from state to state. With that in mind, it is essential that you do your own research in order to ensure that your property is eligible.
Receiving Your Number
If your application for an MCC is accepted, you should receive a physical copy of the certificate from your local government office. This certificate should include your specific MCC number, which is unique to your particular application and will be used for all tax-related documentation.
Requesting a Duplicate Copy
If you do not receive a copy of your certificate, it is essential that you contact the relevant agency in order to receive a duplicate, as you cannot properly file your annual tax returns without the information presented on this form. If you lose your form, you can also request another, although you may incur a small fee for this service.
In order to request a new form, you will have to provide a variety of information, including your Social Security number, birth date, street address etc. As a general rule, make sure you have this form in your possession well in advance of the annual tax deadline!