IRS Form 1098-MA – IRS Form 1098-MA (Mortgage Assistance Payments) is an information return issued primarily by State Housing Finance Agencies (HFAs) to report mortgage assistance payments made on behalf of homeowners under specific government programs. It helps taxpayers and the IRS accurately determine deductible home mortgage interest, real estate taxes, and related expenses when assistance payments are involved.
The current revision is April 2025 (or later continuous-use versions), and the official PDF is available directly from the IRS: Download Form 1098-MA PDF.
What Is Form 1098-MA Used For?
Form 1098-MA reports two main categories of payments for tax year reporting (e.g., 2025 payments filed in 2026):
- Mortgage assistance payments made by a State HFA (or HUD) using funds from programs such as:
- The Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HFA Hardest Hit Fund).
- HUD’s Emergency Homeowners’ Loan Program (EHLP).
- Substantially similar existing state programs.
- Homeowner mortgage payments made directly by the borrower (often routed through or reported via the HFA).
The form provides information to both the IRS (via Copy A) and to the homeowner (recipient/borrower statement). The assistance payments themselves are generally not taxable income to the recipient, but they impact how much mortgage interest you can deduct on Schedule A (Form 1040).
Who Files Form 1098-MA and Who Receives It?
- Filers (Payers): State Housing Finance Agencies (HFAs), HUD, or entities administering qualified mortgage assistance programs. They must file if they make these payments.
- Recipients: Homeowners/borrowers who received assistance or had payments reported under these programs.
Filing deadlines (standard for most 1098-series forms):
- To recipient (homeowner): January 31 of the following year.
- To IRS (paper): February 28.
- To IRS (electronic): March 31. Electronic filing is encouraged/required for large volumes; Form 1098-MA cannot always be e-filed in all systems.
Key Boxes on Form 1098-MA
The form is concise with three primary money boxes (plus payer/recipient identifying information, dates, and account numbers):
- Box 1: Total amount of State HFA mortgage assistance payments and homeowner mortgage payments (typically the sum of Boxes 2 + 3).
- Box 2: Amount of State HFA (or HUD) mortgage assistance payments made on behalf of the homeowner (paid directly to the lender/servicer).
- Box 3: Amount of homeowner mortgage payments (payments actually made by the borrower/homeowner, often to the HFA or servicer).
These amounts help reconcile your actual out-of-pocket payments with assistance received. The form also includes instructions for the homeowner on the recipient copy.
(Refer to the uploaded form image or official PDF for the exact layout and any state-specific notes.)
How Does Form 1098-MA Affect Your Tax Deduction?
If you also receive a Form 1098 (Mortgage Interest Statement) from your lender/servicer and meet specific conditions, you may use a special computation method for your home mortgage interest deduction (and sometimes real estate taxes or mortgage insurance premiums):
Qualifying conditions typically include receiving assistance under:
- A State HFA Hardest Hit Fund program (where payments could cover mortgage interest), or
- HUD’s EHLP (or substantially similar program).
Special method (optional but often beneficial):
- You can deduct all payments you actually made during the year to your mortgage servicer, the State HFA, or HUD—including the amount shown in Box 3 of Form 1098-MA.
- Limit: This deduction cannot exceed the sum of relevant amounts on your Form 1098 (commonly Box 1 mortgage interest received + mortgage insurance premiums + real property taxes in applicable boxes, or Box 1 + Box 10 “other” in some descriptions).
You are not required to use this method—you may instead deduct only your direct payments minus assistance in the standard way. Consult a tax professional or IRS Pub. 936 (Home Mortgage Interest Deduction) for your specific situation, as rules depend on program details and tax year.
Common Questions About Form 1098-MA
- Is the assistance taxable? Generally no—the form is for informational/deduction adjustment purposes only.
- Do I need it if I didn’t receive assistance? No—only if your HFA or program issued it.
- What if I lost my form? Contact the issuing HFA/State agency; you can also request a transcript via IRS tools, but these forms are not always in standard transcript services.
- Legacy programs? Many Hardest Hit Fund and EHLP programs ended years ago, but some states maintain similar assistance, and the form remains in use.
Final Tips
Always cross-reference Form 1098-MA with your primary Form 1098 when preparing Schedule A. Keep copies with your tax records for at least 3–7 years. For the latest official guidance, visit IRS.gov directly (search “Form 1098-MA”) and review Publication 936 or the instructions accompanying your forms.
For personalized advice, consult a qualified tax preparer or use IRS Free File tools, especially if your mortgage assistance involves complex programs or multiple properties.
Sources: Official IRS pages (updated as of January 2026 with no major recent changes noted), Form 1098-MA (Rev. April 2025), and reliable tax software explanations from TaxAct and Intuit ProConnect.
This guide reflects current IRS rules as of early 2026. Tax laws can change—always verify with the latest IRS publications for your filing year.