Understanding Form 1098-MA Mortgage Assistance Payments in ProConnect Tax

Form 1098-MA helps determine (along with Form 1098) how much home mortgage interest is deductible by the taxpayer.

• Generally, mortgage interest paid by the taxpayer is deductible.
• If assistance is received, the deductible changes because the taxpayer didn't pay all of the mortgage.
• The 1098-MA only provides the amount of mortgage assistance received by the taxpayer, it doesn't break it down between principal payments and interest payments, nor does it break out any real estate tax component that may be included. 

For more information

• IRS Pub. 530 has information on homeowners who receive assistance under a state Hardest Hit Fund or an Emergency Homeowners' Loan Program as well as general rules on what can be deducted.

Future changes for tax year 2026

For tax years beginning after December 31, 2025, the One Big Beautiful Bill act will make changes to the make the Deduction for Mortgage Interest by making the $750,000 acquisition indebtedness limit permanent and eliminating the the previous treatment of mortgage insurance premiums as deductible interest. These changes will go into effect in tax year 2026.