Facts
Car-loan interest fact cards
Printable-looking cards drawn from the IRS Working Families Tax Cuts pages. Not a determination that any loan is deductible.
Cap
$10,000 of interest / year
The IRS Working Families Tax Cuts pages state the maximum annual deduction is $10,000.
Years
Tax years 2025–2028
The IRS describes the deduction as effective for 2025 through 2028.
MAGI
Phaseout starts $100k / $200k
The IRS says the deduction phases out for MAGI over $100,000 ($200,000 joint).
Lease
Lease payments do not qualify
Quoted from the IRS Working Families Tax Cuts pages. A lease forfeits this interest deduction.
Used
Used vehicles do not qualify
The IRS requires that original use of the vehicle starts with the taxpayer.
Assembly
US final assembly required
The IRS requires final assembly in the United States. This site scores PlantCountry === UNITED STATES (USA).
Return
VIN on the return
The IRS says the VIN must be included on the return for any year the deduction is claimed.
1098-VLI
Lender statement ~ Jan 2027
Lenders must furnish interest statements. Many filers should watch for Form 1098-VLI around January 2027.
MAGI phaseout start (illustration)
IRS fact: phaseout starts for MAGI over $100,000 ($200,000 joint). The slope is an OBBBA-statute illustration, not a prepared return.
Interest vs the IRS cap
Illustration only. Use the interest estimator and the VIN checker.
Not tax advice. Not affiliated with the IRS or NHTSA. Owned by Record of Sale, LLC. Cite the IRS Working Families Tax Cuts pages. This site never says a loan is deductible. VIN checker.