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Why is my new vehicle loan interest deduction $0?

Why is my new vehicle loan interest deduction $0? I bought it new and it was made in Kentucky last summer
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2 Replies
MindyB
Employee Tax Expert

Why is my new vehicle loan interest deduction $0?

Your deduction is likely $0 because for single filers, the income phase-out begins at $100,000 and is completely gone once your Modified Adjusted Gross Income (MAGI) hits $150,000. Alternatively, the deduction is also not available if your income is low enough that you already owe $0 in federal income tax.

 

Also, double-check that you’ve entered the VIN on Schedule 1-A, as the IRS requires this.

Why is my new vehicle loan interest deduction $0?

TurboTax does not give a reason why it shows that a vehicle does not qualify. Only later after I got that message did I find that I had mistakenly entered one digit wrong on my vehicle identification number. Otherwise my vehicle did meet all of the IRS criteria and when I corrected that digit, TurboTax accepted my information.

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