In order to qualify for this car loan interest deduction, your vehicle must meet all of these requirements:
- You purchased it in 2025. It is not leased.
- It’s a brand new vehicle, not used.
- Its final assembly was in the U.S.
- You are asked to check this requirement by entering your VIN and model year into the VIN decoder provided by the National Highway Traffic Safety Administration.
- It's a car, van, SUV, motorcycle, or pickup truck that weighs less than 14,000 pounds.
- It was purchased for personal use.
- The interest was not paid to a family member or a business you own.
- Your loan must be secured by the vehicle.
If you meet all of these requirements, you should go back through the vehicle loan interest section of your TurboTax program and make sure you have answered all of the questions properly.
The vehicle loan interest section is found under "Deductions & Credits" in the TurboTax program.
For additional information regarding the vehicle loan interest deduction, please click here for What is the vehicle loan interest deduction?
Click here for Treasury, IRS guidance on the new deduction for car loan interest under the One, Big, Beautiful Bill.
Click here for Video: One Big Beautiful Bill: New Car Loan Interest Deduction (Part 4).
If you have additional information or questions regarding this, please return to Community and we would be glad to help.
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