Will the Auto interest Deduction form be fixed? A MAGI of $120,000 is eligible for $6,000 of the car loan interest deduction. The form calculates $0 deduction.

Forum|Forum|6 months ago
January 7, 2026
1 reply
32 views

I would expect the amount I could deduct would decrease from 10000.00 for 2025 to 6000.00 for 2025. with a 120000 MAGI. My interest paid last year was 2044. It should show a deduction of 2044.

TurboTax Online

DoninGA

Level 15

The auto loan interest deduction is calculated on the new IRS Schedule 1-A

Schedule 1-A in TurboTax is estimated to be available on 01/14/2026.

TurboTax website for forms and schedule availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product=Turbotax_online&bu=cg

EpicRivalryAuthor

Level 2

Schedule 1-A shows as available. This is still not calculating correctly for MAGI of $120000. It says "Congrats! You're saving money on your taxes." and the Vehile loan interest deduction is $0. A MAGI of $120000 is still eligible for the deduction. It reduces the maximum amount for the deduction by 200.00 for each 1000 over 100000. So instead of 10000, the maximum amount a person could deduct should be 6000.00

When will this form be fixed? If I am missing any additional information, please let us know.

AmeliesUncle

Level 15

@EpicRivalry wrote:
It reduces the maximum amount for the deduction by 200.00 for each 1000 over 100000. So instead of 10000, the maximum amount a person could deduct should be 6000.00

Yes, it reduces the deduction by $200 for each $1000 over $100,000.

However, did you pay $10,000 or more in loan interest? It reduces the DEDUCTION, not the maximum cap. With $120,000 of income, your deduction is lowered by $4,000. If you paid $4,000 or less of interest, your deduction will be $0.