where do i deduct interest payments on new 2025 car?

maasenjj56 — Mon, 23 Feb 2026 21:32:51 GMT

i meet all requirements

Re: where do i deduct interest payments on new 2025 car?

xmasbaby0 — Mon, 23 Feb 2026 21:34:36 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

MinhT1 — Mon, 23 Feb 2026 21:35:34 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 out 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, the overtime deduction and the tips deduction, to line 13b of your form 1040.