Use of an MCC:
As a recipient of an MCC you may file a new W-4 form with your employer, reflecting the MCC Federal tax savings. By taking this step, the number of exemptions will increase, reducing the amount of taxes withheld and increasing your take home pay. It is important for you to know that the amount of the credit will decrease over the life of the loan as the balance is paid down and you may want to revise your withholdings later during the life of the loan. If the amount of the MCC Federal tax credit exceeds your Federal tax liability minus any other personal credits for the tax year, the unused portion of the MCC tax credit can be carried forward to the next three years or until used - whichever comes first. You are responsible for tracking the unused MCC tax credit each year. The current year MCC tax credit is applied first and then the oldest amount of unused MCC tax credit is applied next.
Learn how much mortgage credit you are eligible to receive on your 2009 taxes by using SONYMA's mortgage credit calculator*.
*Important Note:
The result from the mortgage credit certificate calculator is only an
estimate based on the information you have provided. Only the IRS or a qualified tax preparer can determine the exact credit amount.
Disclaimer: The amount of the Federal tax credit cannot exceed the amount of a borrower's annual Federal income tax liability. Unused portions of the credit may be carried forward for up to three (3) years.
Last updated: 8/20/2009 10:46:46 AM