I qualify for the vehicle loan interest deduction but it states zero? Yes, my MAGI joint filing is 242K but phase out calculation is $1600 max I can deduct.

[SharonD007]

To qualify for the car loan interest deduction, your vehicle must meet all these rules:

• It was purchased, not leased, in 2025.
• It’s a brand-new vehicle. It’s not a used vehicle.
• Its final assembly was in the U.S.
  • You can check this by entering your VIN and model year into the VIN decoder provided by the National Highway Traffic Safety Administration.
  • You’ll also include the VIN on your tax return.
• It's a car, van, SUV, motorcycle, or pickup truck that weighs less than 14,000 pounds.
• You bought it for personal use.
• You didn’t pay the interest to a family member or a business you own. The loan must be secured by the vehicle.

New car loan interest is entered in the Deductions and Credits Section. You will see it on Schedule 1a and will end up on Form 1040, line 13.

To enter your car loan interest:

1. Go to Deductions & Credits
2. Add more deductions
3. Cars and Other things you own
4. Car loan interest
5. Follow the screen prompts.

For more information, refer to the TurboTax article What is the vehicle loan interest deduction?, and What is IRS Schedule 1-A: New 2025 Form for Additional Deductions Explained.

IRS Rules for the One Big Beautiful Bill Car Loan Interest Deduction: What You Need to Know

[NCperson]

@user17761865047 just to confirm, MAGI is line 11b of form 1040. 

[AmeliesUncle]

I suspect that you are misunderstanding how the phase-out works.

MAGI of $242k means your deduction is reduced by $8400.  

If you had $10,000 or more of qualified vehicle loan interest, yes, you would get a deduction of $1600.

But if you had $8400 or less of qualified vehicle loan interest, that is reduced by $8400, which gives a $0 deduction.