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Stephen G.
Stephen G., Sr Income Tax Expert
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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How do I file forms 1098 and 1098-MA on Turbox Tax. On

Customer Question

How do I file forms 1098 and 1098-MA on Turbox Tax.

On my 1098 form from the lender
line 1. Mortgage Interest Received from payer(s)/borrower(s) $8,793.38
line 2. Blank
line 3. Blank
line 4. Mortgage Insurance Premiums $784.29
Real Estate Taxes Paid $1093.40

On my 1098-MA
line 1. $12319.10
line 2. $11489.10
line 3. $830
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

Stephen G :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything that is not clear.

Stephen G :

The 1098-MA is the Mortgage Assistance form which basically isn't used for income tax reporting but is used for various other assistance programs.

Stephen G :

Do you know how much of your mortgage payments, interest, etc. were paid by the program?

Stephen G :

You will need to figure that percentage times the 1098 amounts to determine the balance actually paid by you in order to get the proper income tax deduction.

Customer :

On my 1098-MA line 1. Which show the total amount of State HFA/HUD mortgage assistance payments and homeowner mortgage payments. $12319.10 line 2. $11489.10 line 3. $830

Customer :

Box 2. Shows the amount of State HFA/HUD mortgage assistance payments. and Box 3. Shows the amount of homeowner mortgage payments I paid to the State HFA or HUD.

Customer :

Basically $11489.10 was paid by the program and $830 was paid by me for a total of $12319.10.

Stephen G :

Is there a question?

Stephen G :

Are you typing?

Stephen G :

If so, hit enter & then continue

Customer :

When I file my taxes on Turbo and come to the section for 1098 Mortgage deduction I usually would just enter the amounts exactly how they appear on the form 1098. Now I have this 1098-MA (Mortgage Assistance Payment) Form and I'm trying to figure out if I should disregard the 1098 information from the lender.

Stephen G :

If you see the instructions to the Homeowner on the 1098-MA, you will see that there's a safe harbor provision that allows you to deduct all of the payments YOU made; you can't deduct the subsidized payments;

Stephen G :

So the question is, is the $830. all you paid or did you also pay the real estate taxes & the mortgage insurance premiums?

Stephen G :

The idea is that you don't have to pay tax on the subsidized payments, but you also can't take a tax deduction for something you didn't pay yourself.'

Customer :

My real estate taxes and mortgage ins premiums are all escrowed into my mortgage payments. So the Form 1098-MA is showing that I only paid $830 to the State HFA or HUD. They paid at 90-95% of the mortgage payments.

Stephen G :

Right, so the safe harbor says you can deduct 100% of what you paid, so if I were you I'd deduct the $830. as mortgage interest on your primary residence.

Stephen G :

Will you still have enough to itemize, or will the standard deduction be higher now?

Stephen G :

Turbo Tax should compute that automatically.

Customer :

So, when I go online to fill out my taxes on Turbo Tax for mortgage interest I should put $830. Insurance premiums leave $0 and property taxes $0. even though the mortgage interest amount listed on my 1098 from the lender is $8,793.38?

Stephen G :

The lender got his money, it's just that you didn't pay it. That's correct, the 830. goes in interest. Don't forget the IRS also has a copy of the 1098-MA, so they know how much you actually paid.

Stephen G :

If you need to contact me again with any tax or financial questions, you can just ask for "Steve G" at the beginning of your question. Again, please remember to rate my response. Bonuses, where you think they are warranted, and excellent ratings, are always most appreciated. Thanks again for using JustAnswer.com.

You may get a short survey from the site; if it isn't too much trouble please answer it; thanks, SEG

Customer :

Thanks Stephen!

Stephen G :

You are very welcome; please remember to rate my response.

Stephen G :

Did you attempt to rate my answers? Please do so as that is the only way I will receive credit for my time and effort. Thanks again for using JustAnswer.com & I hope that I can assist you in the future should the need arise.

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Stephen G.
Stephen G.
Sr Financial & Tax Consultant
3662 Satisfied Customers
Extensive Experience with Tax, Financial & Estate Issues