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Where do I enter form 1098-MA?

  • 1098-MA.I have 15,024 on boxes 1 and 2, nothing on box 3. I am lost now. Can I deduct my mortgage or not ? Or what amount should I deduct?
  • Why does Turbo tax doesnt make it clear for its customers what and how to do the taxes report on 1098 MA? !!!  
    I find turbo tax's lack of help annoying.
  • Howdo i  enter form 1098-mA
  • I agree. Turbo Tax should be prepared to address ALL tax situations and customers should haven't to rely on help from the "community" to figure this stuff out.
Try this new IRS bulletin just issued at this linkhttp://www.irs.gov/irb/2013-06_IRB/ar08.htmlExcerpt below explain tax consequences to Homeowners.  The way I read: you can only deduct what you actually paid in interest, property taxes and mortgage insurance premiums.  Just keep the 1098-MA for your records as you do not input into Turbo Tax.  If you are audited you will need to have your 1098 Mortgage Interest Statement and documentation supporting the interest payments, property taxes and mortgage insurance premiums you actually made/deducted.  Also keep in your file, the 1098-MA.  Remember the 1098-MA will probably reflect both principle and interest payments so you can't just deduct the amount shown on 1098-MA from the amount shown on 1098 to get your deductions.  You need to know what your interest payments were each month you made payments and total those for interest deduction.  Same for property taxes and mortgage premium payments...only deduct what you actually paid for the year.  Internal Revenue Bulletin: 2013-6                           February 4, 2013
Notice 2013-7
Extension of Guidance in Notice 2011-14 and Rev. Proc. 2011-55 for Participants in the HFA Hardest Hit Fund, the Emergency Homeowners’ Loan Program, and Substantially Similar State Programs
Income Tax Consequences to Homeowners
For taxable years 2010 through 2015, a homeowner may deduct on his or her Federal income tax return the lesser of—
  • The sum of all payments on the home mortgage that the homeowner actually makes during a taxable year to the mortgage servicer, HUD, or the State HFA; and

  • The sum of amounts shown on Form 1098 for mortgage interest received, real property taxes, and (for years 2010 through 2013 only) mortgage insurance premiums. (For Forms 1098 issued for 2010 and 2011, mortgage servicers report these amounts in Box 4 (Mortgage insurance premiums). On Form 1098 for 2012, Box 4 is unlabeled, but, pursuant to instructions, mortgage servicers should again report these amounts in Box 4.)

This safe harbor method of computing the homeowner’s deduction applies for a taxable year if (1) the homeowner meets the requirements of §§ 163 and 164 to deduct all of the mortgage interest on the loan and all of the real property taxes on the principal residence, and (2) the homeowner participates in a State Program in which the program payments could be used to pay interest on the home mortgage, or the EHLP or an SSSP

    There isn't a spot to enter the 1098MA in TurboTax. You need to decipher how much mortgage interest and property taxes and mortgage insurance (if applicable) is included in line 3 of the 1098MA. These are the only deductible expenses allowed for your home.  However, per the IRS, if you qualify you can all the payments you made as follows: 

    Hardest Hit Fund and Emergency Homeowners' Loan Programs

    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:

      1. A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or

      2. 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.

     

    • Where can I find the "special method to compute my deduction" mentioned above?
    • My understanding is that they (HHF) paid my mortgage and interest and taxes so I do not get to claim any of it since they paid it for the whole year.
    • Ok, we dont get to claim it, but how do we report the amount given per the 1098+MA statement. I guess we report this somewhere or we wouldnt need the 1098-MA form? Please let me know what to do with this form.???? Thanks
    • I also have a form 1098-MA, it was for only 6 months of payments, how do I get this into Turbo tax? I had $6,268 in mortgage interest and $11,544 of Mortgage assistance, how do I calculate this and where do I put that number?
    • I also have form 1098-MA, I have $9,303 mortgage interest and $2,361 property taxes (form 1098). On my 1098-MA i have line 1 $8,857.39 (from california gov. assistance).

      whats my magic number and how would i enter it.

      Thanks
    If you received mortgage assistance and have received a Form 1098-MA

    "To claim the Mortgage Interest deduction, you should calculate how much interest reported by your lender that was paid by YOU for 2012. Performing the calculation will include knowing how many months of assistance you were provided, how many monthly payments you paid independently, and the monthly interest charged by your lender (this information can be found on your payment statement or mortgage history)."

    This statement was included in the letter that I received from the hardest hit fund that accompanied my 1098-MA. You can only claim the mortgage interest that YOU actually paid for 2012. 

    I only made 2 mortgage payments for 2012. I logged into my mortgage account, navigated to my payment history and noted the amounts applied to interests for the 2 months that I paid and entered that total on my tax return. If your payment history does not separate the amount applied to interest and the principal each month than contact your lender and they can provide you with an interest total for the amount of months that you need.

    I hope this helps.
      I am confused also, what special formula? where is it?
      • I received a 1098 MA form after I received the 1098 form from my bank. I had $3670 of interest and $7240 on property taxes to be taken as a deduction. Back last May 2012 homekeepers ( hardest hit) began to pay most of my mortgage the rest of the year going forward. Thus I only contributed 35 dollars each month. I was looking forward to taking the deduction and getting $1000 extra back. Now I am not sure what the situation is. Should I declare the interest and property taxes like I usually do and ignore the 1098 MA form? what are the consequences?  Also should I list the months that were not paid by the homekeepers? I am very confused, and turbo and H&R block talk about a safe haven but not sure what the formula is.
      • HELLO TURBO TAX???  AN ANSWER WOULD BE NICE???  I also have a form 1098-MA.  I can't figure out if it is supposed to be entered as income or as deductions for the interest and property taxes that were paid on my behalf...  Feel free to help us all out, here, please!!!
      • Still awaiting answers......How do we use the method to calculate what we can deduct & what is the formula? Is the whole amount of interest deductible?
      • Safe-harbor deduction computation.

        You may use a safe-harbor method to compute your deduction for mortgage interest, mortgage insurance premiums, and real property taxes on your main home if you meet two tests.

        First, you meet the rules to deduct all of the mortgage interest on your loan, all of the mortgage insurance premiums, and all of the real property taxes on your main home.

        Second, you participated in an HFA Hardest Hit Fund program in which program payments could be used to pay mortgage interest or you participated in an EHLP.

        If you meet these tests, then you may deduct an amount equal to the SUM of all payments you actually made during the year to your mortgage servicer, the State HFA, or HUD. However, the amount you may deduct cannot EXCEED the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (Mortgage interest received from payer(s)/ borrower(s)), and any real estate taxes and mortgage insurance premiums reported in box 4.  

        However, you are NOT required to use this safe-harbor method to compute your deduction for mortgage interest, mortgage insurance premiums, and real property taxes on your MAIN HOME.
      • So if you meet the tests and interest, taxes are for your MAIN HOME then what?  Can you deduct all the interest reported by the lender?
      • I read the publication http://www.irs.gov/pub/irs-pdf/p936.pdf  and honestly I have the same last question.  It seems to imply that if this is your main home that no special calculation is needed thus you can claim all of it.   It wouldn't make sense that one can't claim any of the interest or taxes on ones primary home.  So i assume my interpretation o be correct.
      • I agree with david_32658.  I also read the IRS instructions, since Turbo Tax has still not come through with a user-friendly plain english explanation for what we can deduct and where.  Everything Turbo Tax has posted as an "answer" has been incomplete or confusing, which is definitely NOT what we pay for each year.  From my read on the IRS web site, it looks like if the assistance was for your main home and you qualify for the two tests listed above, you don't have to use this "safe harbor" test and should be able to deduct all the interest and property tax and mortgage insurance payments you made to the mortgage lender PLUS the payments made on your behalf by the hardest hit fund. For example, I believe that the 9 months of payments that I personally made on my mortgage before the hardest hit fund kicked in, would be deductible under regular IRS rules -- and that then I would combine that amount with what the hardest hit fund paid in the final 3 months of the year under the rules listed in this "safe harbor" thing to arrive at my total 2012 deduction. ***TURBO TAX:  PLEASE REPLY AND EITHER CONFIRM THAT MY UNDERSTANDING IS CORRECT, OR GIVE A PLAIN ENGLISH EXPLANATION OF WHY IT IS NOT, AND WHAT I SHOULD DO INSTEAD.***
      • "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......". From IRS pub 936, page 5.  My interpretation is that you must calculate the interest paid by mortgage assistance and subtract that from the total interest reported by your lender (form 1098) and claim the remainder as interest YOU actually paid.  In CA mortgage assistance pays the entire payment which is what they report on the 1098MA.  Only part of the payment is interest.
      • Yes. You can report all the interest from  the 1098 and the 1098-MA, so long as the amount listed on the 1098-MA is not a duplication of the information reported on the original 1098. The key is no double dipping and the amount reported cannot exceed the actual amount paid in interest and taxes.

        2 common situations will occur:
         
        1) If the original 1098 lists all the mortgage interest and taxes paid by you and mortgage relief fund, then you only need to report  the amounts on this 1098. The 1098-MA is merely retained for your records- and its not entered on your return.

        2) If the original 1098 list your interest payments plus the 1098-MA lists the relief funds payments, then you may enter both 1098s in to net the total paid by both you and the relief fund for mortgage interest and taxes.
      • I think Im fairly smart but this sounds redunant and confusing.  I was ready to file til all this arose.  We paid through may 2012 got the hardist hit and all interest and payments and property taxes from then on where  paid by them.   My orginal regular 1098 from the lender reflected 4k in interest payments which is what I put in and probably about what the real interest was I actually paid myself.   3 days ago I recieved a revised regular 1098 from the lender reflected the full interest paid (what we'd normally) claim.   Any accountant we ask doesnt even know the answer.  This results in about an extra $500 refund when you put full interest in.

        It sounds like you can still deduct the full by what everyone is saying?  I mean techincally its a repayable loan so that is similiar to paying yourself i guess...

        On another note my 1098-MA  seems wrong it says my total ass is 15 747.76..but on line 3 where it states homewoner mortgage payments it says zero 0 ..which isnt the case since i paid 4 or 5 months worth.

        So lost and don't want to be audited after trying to save some money and do my own taxes this year!
      • Hello,   For about three weeks i tried to figure out what the 1098 MA meant and what the IRS had published, and it was all confusing and inconsistent.  So after much thought I decided to go with what seems logical to do.   My mortgage is roughly 3200 per month.  For the year 2012 I paid 65% of the mortgage thus I calculated 65% of the taxes and of the interest paid and put these amounts in my deductible section.    This is what i think they were trying to say in the publications.   It is not worth the risk to add all of the interest or taxes when I know i didn't pay it all.   Just using common sense.  Good luck.
      • The way i read was, if you didnt make the payments, you cant take the interest deductions. You still have calculate the difference of P & I of what you paid and what was paid for you. Do not include these mortgage assistance payments in your income. Also, do not use these payments to reduce other deductions, such as real estate taxes.
      • @stephaniemestrel - Line 3 is the mortgage payments you made directly to the hardest hit fund. If you made mortgage payments directly to your lender than it would not be reflected on your 1098 - MA therefore line 3 would be 0.