A quarterly magazine from the National Association of Enrolled Agents
Spring 2026 vol.44 no.1
“No Tax on Car Loan Interest?” How the New Deduction Works
Tax Planning

“No Tax on Car Loan Interest?” How the New Deduction Works

Beginning in 2025, some taxpayers will have a new opportunity to deduct interest on personal auto loans. Section 70203 of Public Law 119-21 (the One Big Beautiful Bill Act) amends §163 of the Internal Revenue Code (IRC), allowing a deducti... Kyle Harris, EA

Winter 2025, Tax Planning, interest, modified adjusted gross income, MAGI, adjusted gross income, AGI, Clean Air Act, One Big Beautiful Bill Act, §931, §933, OBBBA, §163(h)(4), §163(h)(4)(E)(ii), vehicle identification number, VIN, Schedule 1-A, car loan