As xmasbaby0 mentions above, you would enter your car loan interest when inputting your Federal return information under "Deductions & Credits" and then "Cars and Other things you own" and then "Car Loan interest."
You can deduct up to $10,000 of interest paid on loans for new vehicles that you bought between 2025 and 2028.
You will be able to deduct the entire $10,000 if your income is under $100,000 (or $200,000 if Married Filing Jointly).
The deduction is available even if you don't itemize your deductions.
To qualify for this car loan interest deduction, the following requirements must be met:
- The vehicle must be a new car, minivan, van, SUV, pickup truck, or motorcycle with a gross vehicle weight rating (GVWR) of less than 14,000 pounds
- The vehicle must be assembled in the U.S.
- The vehicle must be driven mostly for personal reasons
- The vehicle must be built primarily for use on public streets, roads, and highways
Click here for What is the vehicle loan interest deduction?
Click here for IRS Rules for the One Big Beautiful Bill Car Loan Interest Deduction: What You Need to Know.
If you have additional information or questions regarding this, please return to Community and we would be glad to help.
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