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Reporting Form 1098-MA Mortgage Assistance Payments in the Individual Module in Lacerte

SOLVEDby IntuitLacerte Tax12Updated July 19, 2022

Use Form 1098-MA to calculate amounts for Schedule A lines 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. Input the amount in the field 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) and enter the following:
    • Payee's name
    • Payee's SSN or EIN
    • Payee's street address
    • Payee's city
    • Payee's state
    • Payee's ZIP
    • Amount

Who qualifies for the deduction

A special method to compute deductions for mortgage interest and real estate taxes on a main home may be used if the following two conditions apply:

  1. Homeowners received assistance from the following federal or state housing programs:
    • State Housing Finance Agency (HFA) Hardest Hit program in which program payments could be used to pay mortgage interest
    • An Emergency Homeowners' Loan program administered by the Department of Housing and Urban Development (HUD) or a state
  2. Homeowners meet the rules to deduct:
    • All of the mortgage interest on their loan
    • All of the real estate taxes on their main home

Amounts you can deduct

If these tests are met, then all mortgage payments made during the year to a mortgage servicer, the state HFA, or HUD may be deducted. This includes the amount shown in box 3 of Form 1098-MA, Mortgage Assistance Payments.

The total paid, however, may not exceed the sum of the following amounts:

  • Amount shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received)
  • Amount shown in box 4 (mortgage insurance premiums and real property taxes)
  • Amount shown in box 5 (real property taxes)

This special method to compute deductions for mortgage interest and real estate taxes on a main home isn't required.

Refer to Publication 530 for more information.

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