02/10/2026
There’s a new temporary federal tax deduction for interest on new car loans starting for 2025 returns. If you buy a new car made in the U.S. and pay interest, you may be able to deduct up to $10,000 of that interest, even if you don’t itemize - as long as your income is below certain limits. This isn’t a credit that gives you money back, but it can reduce your taxable income, which lowers your tax owed.