Where is new car loan interest deduction found in turbo tax?

[mindylou1982]

I bought a new vehicle in 2025. The new bill states you can deduct up to 10,000 in interest paid. Turbo tax is not asking if I purchased a vehicle, and I can't find it in the deductions and credit section. If you google this deduction, it says it is above and beyond the standard deduction.

[xmasbaby0]

CAR LOAN INTEREST

Go to Federal>Deductions and Credits>Cars and Other Things You Own>Car Loan Interest

The amount will go on Schedule 1a and end up on Form 1040 on line 13b

[jdearm]

I see there is one reply, and maybe that works, but I agree this seems like something TurboTax should be more direct about and probably missed.  Is there a TurboTax update coming for this?  I missed it and will now have to file an amended return.

[mischip]

That is what the directions say BUT after Federal> Deductions & Credits> tabs, Cars and other things you own does not show as an option.

[DoninGA]

If you are using the TurboTax online editions, when you are accessing Deductions & Credits, click on All tax breaks to open up the section.

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

[mischip]

Finally found it (slightly different than what you just listed).  Turbo Tax needs to make it easier.  I got really frustrated last night searching for it.

1. Federal

2. Deductions and Credits

3. Other Deductions and Expenses

4. Check NO to 3 options

5. Continue

6. Car Loan Interest

[jdearm]

Thanks, now if they would just release the Amended Return update since I missed this the first time around.

[xmasbaby0]

You cannot change or add anything on the return that you just e-filed, nor can you stop it.  It is too late, just like when you put an envelope in a US mailbox on the corner.  The IRS does not allow you to take it back.

If you left out a W-2, a 1099G, or a dependent, or a 1099 etc…DO NOT change your return while it is “pending.”  The changes will go nowhere.

Now you have to wait until the IRS either rejects or accepts your return.  If your return is rejected, you will be able to go into your account and make the necessary changes to your tax return and re-submit your return. 

Sometimes—not always— the IRS corrects your mistakes, while they are processing your return.

 If the IRS accepts your return, however, then you have to wait longer until it has been fully processed and you have received your refund.  THEN you can prepare an amended tax return and e-file or mail  it in. You have to be able to work from that return exactly the way it was when it was e-filed originally.  You will need to use a form called a 1040X.

  Meanwhile, DO NOT go in and start changing anything on your return in the system, or you will make a mess for yourself.  Sit tight and wait until you see what the IRS does with the return you just e-filed

The Form 1040X is scheduled to be available on February 26.   The date is subject to change, so check on 2-26  to see if it is ready.   Before that, do not change anything at all on your return.

@jdearm