my total income for 2025 was $104000, purchased allowable car to deduct interest. Single 76 year old. Why can't i deduct any of the $971 interest I paid?

[DoninGA]

Did you enter the interest in this section of the program?  If so, what is the message you received when the interest payment was denied?

To enter Car Loan Interest -

Click on Federal Taxes (Personal using Home & Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Cars and Other Things You Own
On Car Loan Interest, click on the start or update button

[AmeliesUncle · Accepted solution]

If your income is $104,001 or more, your income is too high.

The deduction starts phasing out at $100,000.

• If your income is $104,100, then the calculation takes $4,100 and divides it by $1,000, to get 4.1.
• Then that 4.1 gets rounded up to 5.
• Then you multiply 5 by $200 to get $1,000.
• That $1,000 reduces your potential deduction.
• Your potential deduction was $971 so it is reduced by $1,000, resulting in no deduction.