08/12/2026
Did you know your car loan interest could save you money at tax time?
Whether you itemize or take the standard deduction, taxpayers may be eligible to deduct up to $10,000 of car loan interest. Just make sure to include your Vehicle Identification Number (VIN) on your return when claiming it!
✨Eligibility Rules:
🔹Vehicle Type: Must be a brand-new passenger vehicle (cars, SUVs, trucks, motorcycles) with a gross vehicle weight rating under 14,000 pounds. Used cars and leases do not qualify.
🔹U.S. Assembly: Final assembly must occur in the United States. You can verify this using the NHTSA VIN Decoder.
🔹Loan Date: The loan must be initiated after December 31, 2024, and secured by a first lien on the vehicle.
🔹Filing Status: Available whether you take the standard deduction or itemize. Not available if filing as Married Filing Separately.
Learn more at IRS.gov/WFTC, and follow Gaur & Associates for more smart tax # tips!