NOTE: Form 1098-MA may not be filed electronically with the IRS. We file a paper copy Form 1098-MA with the IRS.
Generally, the total of State HFA/HUD mortgage assistance payments and homeowner mortgage payments are reported in box 1. The amount of State HFA/HUD mortgage assistance payments is reported in box 2. The amount of homeowner mortgage payments paid to the State HFA or HUD is reported in box 3.
Who needs to file Form 1098-MA?
All State Housing Finance Agencies (HFAs) that participate in the Emergency Homeowners’ Loan Program (EHLP) or the HFA Hardest Hit Fund are required to file this form.
Why is this form filed?
This form is filed with the IRS to provide information regarding mortgage payments made by the homeowners and mortgage assistance payments made with funds allocated from the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HFA Hardest Hit Fund) or the Emergency Homeowners' Loan Program. Copy B of this form is furnished to the homeowner.
Safe-harbor deduction computation:
Homeowners may use a safe-harbor method to compute the deduction for mortgage interest, mortgage insurance premiums, and real property taxes on their main home, provided:
1. They meet the rules to deduct all of the mortgage interest on their loan, all of the mortgage insurance premiums, and all of the real property taxes on the main home.
2. They participated in an HFA Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or they participated in an EHLP.
If the above conditions are met, homeowners may deduct an amount equal to the sum of all payments they actually made during the year to their mortgage servicer, the State HFA, or HUD. However, the amount they may deduct cannot exceed the sum of the amounts shown on your Form 1098 Mortgage Interest Statement.
However, homeowners are not required to use this safe-harbor method to compute their deduction for mortgage interest, mortgage insurance premiums, and real property taxes on their main home.
What is the deadline to file Form 1098-MA?
Furnish Copy B of this form to the recipient homeowner by January 31. File Copy A of this form or the single paper statement with the IRS by February 28. You may request an extension of time for filing Copy A with the IRS by filing Form 8809, Application for Extension of Time to File Information Returns, available on IRS.gov
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What is the penalty for failure to file Form 1098-MA?
The IRS imposes heavy penalties if a business fails to file or fails to file correct information. There is penalty for not providing recipient copies. The penalty increases with time. So, even if you have not filed your form in time, we encourage you to file as soon as possible.
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