Bought a car in 2016 can I deduct the interest and why do we owe money this year we never have before. for the state of Pa.

[re2boys]

Regarding PA, did you have income other than wages reported on your PA return? Did you have an increase in income this year such that you may no longer be eligible for the PA Tax Forgiveness?  Or additional income besides wages?  We can't see your return so all we can do is guess without more detail.

[robloughrey · Accepted solution]

The only way car interest could be deducted would be if the car was used entirely for business purposes, and thus could be used as a business expense. This would have to be a real company that you own that uses the vehicle entirely for business related purposes. If you have never itemized your deductions before then I'm guessing you down own a business and you can't deduct this.