Thursday, February 23, 2012

MCC tax credit....what's that??

THIS IS NEWS WORTHY!  I recently found out about a tax credit that's available right now!  A current client is going to receive around $1500 the first year!!  That's incredible!  If the mortgage applicants (single or both combined) make under $90,000 a year, buy a home under $475,000 (King county, other counties have different requirements) and are going to live in the house....you may qualify.

What you get;  so, everyone gets to write of 80% of their mortgage interest on their taxes (that amount reduces your taxable income).  With the MCC you get a dollar for dollar tax credit for the other 20% of the mortgage interest.

That mean that lets say you paid $10,000 in interest for the year.  80% of that, or $8,000 will reduce your taxable income (so if you made $60,000 now you will be taxed on $52,000).  20% or $2,000 will be a tax credit (this is the good part!) so if you are normally getting a refund of $1,000 you now get a refund for $3,000 ($1,000 plus $2,000).

This credit is for the LIFE of the loan!  Check out this link for more info:

http://www.wshfc.org/buyers/MCCprogram.htm

Why isn't this spread around the NEWS??

2 comments:

  1. Thank you so much for sharing this. This is a great program!

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  2. Thanks Jesse! And THANK YOU for researching the heck out of it and educating all of us on what to do. Our client will be happy year after year getting that credit! VERY COOL! Darlene

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