Yes. Taxpayers can use a special method to compute their deduction for mortgage interest and real estate taxes on their main home if they meet the following two conditions.
The taxpayer received assistance under:
A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or
An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state.The taxpayer meets the rules to deduct all of the mortgage interest on their loan and all of the real estate taxes on their main home.
If the taxpayer meets these tests, they can deduct all of the payments that they actually made during the year to their 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 from payer(s) / borrower(s)), box 4 (mortgage insurance premiums) and box 5 (real property taxes). However, the taxpayer is not required to use this special method to compute their deduction for mortgage interest and real estate taxes on their main home.
Yes. Taxpayers can use a special method to compute their deduction for mortgage interest and real estate taxes on their main home if they meet the following two conditions.
The taxpayer received assistance under:
A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or
An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state.The taxpayer meets the rules to deduct all of the mortgage interest on their loan and all of the real estate taxes on their main home.
If the taxpayer meets these tests, they can deduct all of the payments that they actually made during the year to their 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 from payer(s) / borrower(s)), box 4 (mortgage insurance premiums) and box 5 (real property taxes). However, the taxpayer is not required to use this special method to compute their deduction for mortgage interest and real estate taxes on their main home.