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TURBO TAX DOES NOT LET ME ENTER NEW CAR INTREST THAT IS A NEW DEDUCTION WHICH I QUALIFY FOR

EVEN IF I USE STANDARD DEDUCTION
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TURBO TAX DOES NOT LET ME ENTER NEW CAR INTREST THAT IS A NEW DEDUCTION WHICH I QUALIFY FOR

To enter New 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

SharonD007
Employee Tax Expert

TURBO TAX DOES NOT LET ME ENTER NEW CAR INTREST THAT IS A NEW DEDUCTION WHICH I QUALIFY FOR

Vehicle interest for new car loans is entered in the Deductions and Credits Section of TurboTax. Follow the steps below:

  1. Select Deductions and Credits
  2. Select Cars and Other Things You Own and click on the arrow on the right
  3. Click Start next to Car Loan Interest 
  4. TurboTax will guide you through entering your car loan interest.

Your car loan interest deduction will transfer to Schedule 1-A of your form 1040, which is then transferred together with other deductions to line 13b of your form 1040.

 

You may be able to deduct up to $10,000 of interest paid for the purchase of a new vehicle in 2025. You must meet the following rules to take the deduction:

  • You purchased (not leased) your vehicle in 2025
  • The vehicle was brand new
  • The financial assembly was in the United States
  • The vehicle is a car, van, SUV, motorcycle, or pickup truck that weighs less than 14,0000 pounds
  • The vehicle is for personal use
  • The loan must be secured by the vehicle.

Please review the TurboTax Help articles for more information: What is the vehicle loan interest deduction? and One Big Beautiful Bill: New Car Loan Interest Deduction (Part 4),

 

If you qualify for this deduction, it applies to taxpayers who take the standard deduction and those who itemize.  Refer to the IRS website IRS provide guidance on the new deduction for car loan interest under the One, Big, Beautiful Bill for more information.

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