10/07/2025
๐ ๐ก๐ฒ๐ ๐๐๐๐ผ ๐๐ผ๐ฎ๐ป ๐๐ป๐๐ฒ๐ฟ๐ฒ๐๐ ๐๐ฒ๐ฑ๐๐ฐ๐๐ถ๐ผ๐ป ๐ถ๐ป ๐ฎ๐ฌ๐ฎ๐ฑ โ ๐๐ฒ๐ฟ๐ฒโ๐ ๐ช๐ต๐ฎ๐ ๐ฌ๐ผ๐ ๐ก๐ฒ๐ฒ๐ฑ ๐๐ผ ๐๐ป๐ผ๐
Individuals may now deduct interest paid on qualifying auto loans โ a major win for everyday taxpayers
๐ช๐๐๐ง ๐ง๐๐ ๐ก๐๐ช ๐๐๐ช ๐๐๐๐ข๐ช๐ฆ:
โ
Individuals may deduct ๐๐ฝ ๐๐ผ $๐ญ๐ฌ,๐ฌ๐ฌ๐ฌ annually in interest paid on qualified auto loans
โ
You do ๐ป๐ผ๐ have to itemize to get the deduction
โ
Vehicle ๐บ๐๐๐ ๐ฏ๐ฒ ๐ป๐ฒ๐, ๐ณ๐ผ๐ฟ ๐ฝ๐ฒ๐ฟ๐๐ผ๐ป๐ฎ๐น ๐๐๐ฒ, ๐ฎ๐ป๐ฑ ๐๐ต๐ฒ ๐ณ๐ถ๐ป๐ฎ๐น ๐ฎ๐๐๐ฒ๐บ๐ฏ๐น๐ ๐บ๐๐๐ ๐ต๐ฎ๐๐ฒ ๐ฏ๐ฒ๐ฒ๐ป ๐ถ๐ป ๐๐ต๐ฒ ๐จ๐ป๐ถ๐๐ฒ๐ฑ ๐ฆ๐๐ฎ๐๐ฒ๐
โ
๐ฃ๐ต๐ฎ๐๐ฒ๐ ๐ผ๐๐ for modified adjusted gross income (MAGI) over certain thresholds:
โช๏ธ$100,000 for single filers
โช๏ธ$200,000 for married couples filing jointly
โ
The vehicle weight ๐บ๐๐๐ ๐ฏ๐ฒ ๐๐ป๐ฑ๐ฒ๐ฟ 14,000 pounds
๐ช๐๐๐ง ๐ง๐๐๐ฆ ๐ ๐๐๐ก๐ฆ ๐๐ข๐ฅ ๐ฌ๐ข๐จ (๐ฎ๐ป๐ฑ ๐๐ต๐ถ๐ป๐ด๐ ๐๐ผ ๐๐ฎ๐๐ฐ๐ต ๐ผ๐๐ ๐ณ๐ผ๐ฟ):
๐ If you plan on buying a car in 2025 (๐๐ ๐๐๐ก๐๐ ๐๐๐ก๐ค๐๐๐ 2025โ2028), this could reduce your interest cost burden โ especially as rates are high
๐ง ๐๐ผ๐ป๐ณ๐ถ๐ฟ๐บ ๐ฒ๐น๐ถ๐ด๐ถ๐ฏ๐ถ๐น๐ถ๐๐ ๐ฐ๐ฎ๐ฟ๐ฒ๐ณ๐๐น๐น๐ โ vehicle must satisfy the US assembly rules, new purchase, and personal use (used, leased, or commercial vehicles do not qualify)
๐ง Higher-income earners ๐บ๐ฎ๐ ๐๐ฒ๐ฒ ๐ฎ ๐ฟ๐ฒ๐ฑ๐๐ฐ๐ฒ๐ฑ ๐ผ๐ฟ ๐ป๐ผ ๐ฏ๐ฒ๐ป๐ฒ๐ณ๐ถ๐