Can I take the Mortgage Interest Credit AND the deduction for mortgage interest that was reported on Form 1098 on the same return?
Yes. It is possible to take the Mortgage Interest Credit and the deduction for home mortgage interest.
However, if you received a qualifying Mortgage Credit Certificate (MCC) and you also want to claim the home mortgage interest deduction, you must reduce your home mortgage interest deduction by the amount that is found on the corresponding Form 8396, line 3. You must do this even if part of the amount on line 3 of your current year Form 8396 is being carried forward to next year.
Enter your mortgage interest by selecting Federal Section > Deductions > Itemized Deductions > Mortgage Interest and Expenses.
Enter your mortgage interest credit by selecting Federal Section > Deductions > Credit Menu > Mortgage Interest Credit.
For further information click here.