Form 1098-MA
If you received mortgage assistance payments from HUD or state housing finance agencies, they will report your mortgage payments on Form 1098-MA.
You can deduct as mortgage interest on Schedule A (if you itemize your deductions) the amount of mortgage interest that you personally paid. You can't deduct the mortgage interest paid by HUD or the state agency. Mortgage payments that you made will usually be shown in Box 3 of Form 1098-MA. Mortgage payments made by HUD or the state agency will usually be shown in Box 2 of Form 1098-MA.
You will usually receive a Form 1098 from your bank or lender showing the total amount of mortgage interest you paid during the year. Form 1098-MA helps you to know how much of the mortgage interest on Form 1098 you can deduct on your tax return. Under the safe harbor rule, you can deduct the sum of all personal payments made during the year up to the amount of the mortgage interest and property taxes shown on your Form 1098 in Boxes 1, 5, and 10.
You will need to calculate how much mortgage interest you can report on your Schedule A. For example, if your Form 1098 shows $10,000 in mortgage interest paid, and you calculate that HUD paid $3,000 of the mortgage interest on your behalf. You would then enter $7,000 of mortgage interest on your Schedule A as an itemized deduction and not the full $10,000.
You can deduct as mortgage interest on Schedule A (if you itemize your deductions) the amount of mortgage interest that you personally paid. You can't deduct the mortgage interest paid by HUD or the state agency. Mortgage payments that you made will usually be shown in Box 3 of Form 1098-MA. Mortgage payments made by HUD or the state agency will usually be shown in Box 2 of Form 1098-MA.
You will usually receive a Form 1098 from your bank or lender showing the total amount of mortgage interest you paid during the year. Form 1098-MA helps you to know how much of the mortgage interest on Form 1098 you can deduct on your tax return. Under the safe harbor rule, you can deduct the sum of all personal payments made during the year up to the amount of the mortgage interest and property taxes shown on your Form 1098 in Boxes 1, 5, and 10.
You will need to calculate how much mortgage interest you can report on your Schedule A. For example, if your Form 1098 shows $10,000 in mortgage interest paid, and you calculate that HUD paid $3,000 of the mortgage interest on your behalf. You would then enter $7,000 of mortgage interest on your Schedule A as an itemized deduction and not the full $10,000.
