topic Where do I enter deduction for auto loan interest? in Deductions & credits

Where do I enter deduction for auto loan interest?

jostrander143 — Thu, 05 Feb 2026 11:29:43 GMT

Re: Where do I enter deduction for auto loan interest?

xmasbaby0 — Thu, 05 Feb 2026 14:31:07 GMT

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

Re: Where do I enter deduction for auto loan interest?

MinhT1 — Thu, 05 Feb 2026 14:43:22 GMT

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.

Re: Where do I enter deduction for auto loan interest?

duffluck — Wed, 11 Mar 2026 15:43:47 GMT

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!

Re: Where do I enter deduction for auto loan interest?

DoninGA — Wed, 11 Mar 2026 15:49:22 GMT

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.

Re: Where do I enter deduction for auto loan interest?

duffluck — Wed, 11 Mar 2026 16:19:45 GMT

Thanks DoninGA. My screen is a bit different then yours. Here are my options. Not sure why?

Re: Where do I enter deduction for auto loan interest?

RogerD1 — Fri, 13 Mar 2026 19:18:02 GMT

If you click on the a topic on that list you have and then back out of it, you will get a screen on Your tax breaks. If you scroll down that page to Cars and Other Things You Own, you can click on that section to expand it. Then click on Start to the right of Car Loan Interest to get started with that section.

Keep in mind that only cars that were purchased new in 2025, assembled in the USA, and purchased only for personal use are eligible for this deduction. You will also need your vehicle VIN in order to complete this section. The VIN will need to start with a 1, 4 or a 5 in order to show that it's final assembly was done in the USA.

Re: Where do I enter deduction for auto loan interest?

duffluck — Fri, 13 Mar 2026 22:46:04 GMT

Got it. Thanks RogerD1!