Description

How do I report Form 1098-MA in the Individual module?


Solution Description

Form 1098-MA should be used to figure what amounts get reported on Schedule A lines 10 or 11.

Per the Schedule A form instructions,

"If you are a homeowner who received assistance under State Housing Finance Agency Hardest Hit Fund program or an Emergency Homeoweners' Loan program, see Pub 530 for the amount you can deduct on line 10 or 11."


To enter Form 1098-MA on Schedule A line 10:

  1. Go to Screen 25, Itemized Deductions
  2. Scroll down to the Interest section
  3. Enter the amount in, Home mortgage interest & points on Form 1098 [A] (Ctrl+E) code 21

To enter Form 1098-MA on Schedule A line 11:

  1. Go to Screen 25, Itemized Deductions
  2. Scroll down to the Interest section
  3. Press Ctrl + E in the field  Home mortgage interest not on Form 1098 (Ctrl+E) (code 22)
    • Payee's name
    • Payee's SSN or EIN
    • Payee's street address
    • Payee's city
    • Payee's state
    • Payee's ZIP
    • Amount

Use Publication 530 to figure what amount should be deducted:

"You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions.

  1. You received assistance under:

    a. A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or
    b. An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state.
     
  2. You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home.

If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098-MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received) and box 4 (mortgage insurance premiums and real property taxes) and box 5 (real property taxes). However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home."