02/04/2026
π 2025 TAX UPDATE β NEW CAR LOAN INTEREST DEDUCTION
Top Notch Tax Service (TNTS)
Starting in 2025, the IRS is allowing a NEW tax deduction for interest paid on qualified NEW vehicle loans β something that was never allowed before.
πΉ What this IS:
β
A tax deduction that lowers your taxable income
β
Available even if you take the standard deduction
β
Up to $10,000 of eligible interest per year
πΉ What this is NOT:
β NOT a refundable credit
β NOT guaranteed refund money
πΉ Who may qualify:
βοΈ Income under $100,000 (Single) or $200,000 (Married Filing Jointly)
βοΈ New vehicle only (not used)
βοΈ Personal-use car, truck, SUV, or motorcycle
βοΈ Final assembly in the United States
βοΈ Loan originated after December 31, 2024
π Lenders will report interest paid on a new IRS form beginning in 2025.
π‘ Bottom line:
This deduction can help reduce what you owe, but it does not create a refund by itself.
π Call/Text: 901-319-6188
π Visit us: 5090 Millbranch Rd, Ste 2, Memphis, TN 38116
Have questions? Top Notch Tax Service (TNTS) is here to help β stay informed and prepared for the 2025 tax season!