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mlsdbaleb
New Member

Do I not get a tax break for the interest I paid on a new car I bought in 2025?

 
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2 Replies

Do I not get a tax break for the interest I paid on a new car I bought in 2025?

maybe. There are qualifications. under deductions and credits>  cars and other things you own > car loan interest

JohnB5677
Expert Alumni

Do I not get a tax break for the interest I paid on a new car I bought in 2025?

Here are the criteria to see if you qualify.

To qualify, the interest paid must be a loan on:

  • A vehicle that was produced after December 31, 2024,
  • The loan was used to purchase a vehicle, 
    • The original use was by the taxpayer 
    • Used vehicles do not qualify.
  • It must be used for personal use (not for business or commercial use) and
  • The loan must be secured by a lien on the vehicle.
  • See the IRS article No Tax on Car Loan Interest
  • See the TurboTax article What is the vehicle loan interest deduction?

To post the credit:  Log into TurboTax

  1. Click on Federal in the ‌column, 
  2. Then on Deductions & Credits
  3. Go to the center panel Deductions and Credits
  4. Select Other Deductible expenses
  5. Scroll to Cars and Other Things You Own and click the arrow on the right
  6. Click Start next to Car Loan Interest 
  7. Follow the Interview
  8. The deduction will transfer to Schedule 1-A of your Form 1040.

@mlsdbaleb

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