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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
The OBBBA has introduced a new deduction for car loan interest paid for new cars you bought for personal use between 2025 and 2028.
The deduction is up to $10,000 if your income is under $100,000 (or $200,000 if MFJ). The deduction is gradually phased for higher incomes.
For the requirements of this deduction, please read this TurboTax Help article.
In TurboTax Online, you can enter your car loan deduction by following these steps:
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