New tax laws let you deduct up to $10,000 of interest paid on loans for new vehicles you bought between 2025 and 2028.
You can deduct the full $10,000 if your income is under $100,000 (or $200,000 if Married Filing Jointly). If your income is higher, the amount you can deduct is less.
In TurboTax Online, the vehicle loan interest deduction is computed on IRS Schedule 1-A Part IV lines 22 through 30.
You may view the computation on IRS Schedule 1-A.
Information about the What is the vehicle loan interest deduction? may be found at this TurboTax Help.
In TurboTax Online, the vehicle loan interest deduction may be found as follows:
- Down the left side of the screen, click on Federal.
- Down the left side of the screen, click on Deductions and Credits.
- Scroll down to Cars and Other Things You Own. Click the down arrow to the right.
- Click Start/Review to the right of Car Loan Interest.
You may print or view your full tax returns prior to filing after you have paid for the software.
- View the entries down the left side of the screen at Tax Tools.
- Select Print Center.
- Select Print, save or preview this year's return.
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