English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

Ok, so I'm preparing my documents for the upcoming tax season and I noticed that on last year's return, although the preparer entered the amount that I paid in mortgage interest, I didn't get a credit for it. Does anyone know why? I remember last year, she explained something about having "too many credits". Is it possible to do an amendment and get the credit this go round?

2007-12-13 04:15:07 · 7 answers · asked by Anonymous in Business & Finance Taxes United States

It does show on the Itemized Deductions. But on lines 64-72 on the 1040, it only gives me a refund for the federal income tax withheld, EIC, Additional child tax credit and a few dollars for a telephone tax I paid. Those items total the amount of my refund, which was the amount that I received last year. I just don't see a credit for the TONS of interest that I paid to my mortgage company last year...

2007-12-13 04:33:56 · update #1

7 answers

There is both a mortgage interest deduction and a mortgage interest credit. The credit reduces the amount you can deduct as an itemized deduction.
Did you have a certificate granting you a mortgage interest credit? Most mortgages do not qualify.

Mortgage Interest Credit is reported on Line 54 of Form 1040 and the box for form 8396 should be checked and Form 8396 should be attached to the tax return.

If you have mortgage interest, it goes on schedule A as an itemized deduction, but your preparer would not use Schedule A if your standard deduction exceeded your itemized deductions.

If you did not receive a deduction or credit that would benefit you, you can file an amended return to get a refund. Form 1040X is used for amending a return.

2007-12-13 04:33:45 · answer #1 · answered by Anonymous · 0 2

You need to walk through your tax return a little slower.

Once your tax bill is zero (line 57 on the 1040; line 37 on the 1040A), that's the best you can do. Your tax bill is either zero because your income got to zero after you subtracted the deduction (standard or itemized) and your exemptions *or* it got to zero after subtracting the "non-refundable" credits such as child care. It doesn't matter exactly how it got zero, but zero is the best you can do.

Once it's zero, your refund will consist of only your withholding back from work, EIC, the additional child tax credit (if your income was high enough) and in 2006, the telephone refund.

The presence or absence of your mortgage interest didn't make difference in the refund, so your preparer ignored it.

2007-12-13 13:19:40 · answer #2 · answered by Anonymous · 0 0

Mortgage interest is an itemized deduction. You only get any benefit from itemizing if you have tax liability for the year - it can only reduce your income tax to zero, and yours was already there so there was nothing to reduce. The other credits had already taken your to zero - that's why you got everything back that was withheld, and also why you were eligible to get the additional child tax credit.

No, an amendment isn't going to change that. Sorry.

2007-12-13 20:06:28 · answer #3 · answered by Judy 7 · 0 0

You only take it on your itemized deductions. Mortgage Interest is not a credit it is a part of your itemized dedcutions and the total goes on your 1040.

2007-12-14 23:23:09 · answer #4 · answered by Gary 5 · 0 0

Mortgage Interest Credits are very rare. First time homebuyers can get them in Washington DC.

If you did qualify for one, keep in mind that the mortgage interest credit is a non-refundable credit. That means it can reduce your tax liability to zero but not create a refund. If your tax liablity was already zero, you would receive no benefit from the credit and there is no reason to amend.

2007-12-13 12:28:50 · answer #5 · answered by Wayne Z 7 · 0 2

It's not a credit, it's under itemized deductions and if your total itemized deductions are less than the standard deduction, then you don't get any extra deduction

2007-12-13 13:42:30 · answer #6 · answered by Anonymous · 0 0

you itemized deductions, right? Check your Schedule A - thats where it should show.

2007-12-13 12:23:17 · answer #7 · answered by npk 7 · 0 2

fedest.com, questions and answers