Asked by T

the Mortgage Interest Credit is a credit intended to help lower-income individuals own a home. All the following statements about this credit are true, EXCEPT:
The credit is available to taxpayers who have a qualified Mortgage Credit Certificate (MCC) issued by a state or local government unit or agency under a qualified mortgage credit certificate program.
The credit is refundable.
The credit is taken on Form 8396.
The home must be the main residence of the taxpayer and must also be located in the jurisdiction of the government unit that issued the certificate.

All Answers 1

Answered by GPT-5 mini AI
The false statement is: "The credit is refundable."

Explanation: The Mortgage Interest Credit is a nonrefundable credit claimed on Form 8396. It can reduce your tax liability to zero but will not generate a refund; any unused credit may be carried forward to later years (subject to the carryforward rules). The other statements are correct.