how do you deduct the vehicle loan interest based on the new "bbb" change?

russellwa4 — Fri, 30 Jan 2026 16:22:28 GMT

Re: how do you deduct the vehicle loan interest based on the new "bbb" change?

Vanessa A — Fri, 30 Jan 2026 16:31:20 GMT

You can enter your car loan interest by selecting the following:

Deductions and credits
Cars and Other things you own
Start next to Car Loan Interest
You will need to enter the VIN and information from the lender

In order to claim this interest the following criteria must be met:

The car was purchased not leased
Final assembly occurred in the US
It is NOT a business use, but was purchased for personal use
It has a GVWR of less than 14,000lbs (car, truck, SUV, mini van or motorcycle)
Loan was originated in 2025 and must be secured by a lien on the vehicle or the title
Your income must be less than $100,000 if single or $200,000 if married filing jointly to receive the full deduction.
If your income is over $150,000 if single or $250,000 if Married filing jointly, you are not eligible

Note: The interest deduction is capped at $10,000. This is an above the line deduction, not a credit meaning it will lower your AGI and taxable income. It will not be an amount that is refunded to you, but it could result in a refund by lowering your taxable income.

topic how do you deduct the vehicle loan interest based on the new "bbb" change? in Deductions & credits

how do you deduct the vehicle loan interest based on the new "bbb" change?

Re: how do you deduct the vehicle loan interest based on the new "bbb" change?