What MORTGAGE INTEREST CREDIT means: Qualified taxpayers who receive a mortgage credit certificate from a state or local government in connection with a new mortgage for the purchase of their main may claim a credit for a percentage of their home mortgage interest. The percentage is set by the government and ranges from 10 to 50 percent. If the percentage exceeds 20 percent, the maximum credit is $2,000 per year. The itemized deduction for home mortgage interest must be reduced by the amount of the credit. Unused credits can be carried forward for up to 3 years. The credit is computed on Form 8396. If purchase a home using a mortgage credit certificate and you sell the home, you may have to pay back some of the credit.
- Definition Modified AGI (MAGI):
- Dictionary gross income (MAGI) is a figure used to figure the limit on an exclusion or deduction allowed in computing adjusted gross income. Depending on the item for which MAGI is being computed, certain items mortgage interest credit definition.
- Definition Margin:
- Dictionary A percentage of the full price of a security that must be paid as a down payment by an investor buying on credit. The required margin fluctuates subject to federal regulations mortgage interest credit explain.
- Definition Moving Expenses:
- Dictionary income permitted to employees and self-employed individuals who move for work-related reasons, providing certain requirements are met. Form 3903 is used to compute deductible moving expenses mortgage interest credit what is.
- Definition Married Filing Separately:
- Dictionary A filing status that can be used by married taxpayers who choose to record their respective incomes, deductions, and credits on separate individual tax returns mortgage interest credit meaning.
How works Mortgage Interest Credit meaning in Tax definitions M .
