Where do I enter deduction for auto loan interest?

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TurboTax Online

xmasbaby0

Level 15

CAR LOAN INTEREST

Go to Federal>Deductions and Credits>Cars and Other Things You Own>Car Loan Interest

The amount will go on Schedule 1a and end up on Form 1040 on line 13b

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

MinhT1

Alumni - Intuit

The OBBBA has introduced a new deduction for car loan interest paid for new cars you bought for personal use between 2025 and 2028.

The deduction is up to $10,000 if your income is under $100,000 (or $200,000 if MFJ). The deduction is gradually phased for higher incomes.

For the requirements of this deduction, please read this TurboTax Help article.

In TurboTax Online, you can enter your car loan deduction by following these steps:

Open your tax return
Click on Federal in the left-hand column, then on Deductions & Credits
Navigate to the list of Deductions and Credits
Click on Other Deductible expenses
Locate the section Cars and Other Things You Own and click on the arrow on the right
Click Start next to Car Loan Interest
Follow the TurboTax questionnaire to enter your car loan interest
The deduction will transfer to Schedule 1-A of your form 1040, which is then transferred together with other deductions such as the additional senior deduction, to line 13b of your form 1040.

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duffluck

Level 2

Thanks for the detailed info. However, under the Deductions & Credits and Other Deductible Expenses, I do NOT see any section for "Cars and Other Things You Own" to enter car loan interest for 2025.

Any help would be appreciated!

DoninGA

Level 15

The attached screen shot was originally used to show the Estimated Tax Payment section, but as you can see the section for Cars and Other Thing You Own is also shown.