How much car loan interest can you deduct?
List every car loan with its VIN and interest. Lientally checks which loans qualify, takes out trade-in equity and business use, applies the $10,000 cap and the income phaseout, and fills in Schedule 1-A lines 23–30. It runs in your browser; nothing is uploaded.
How it works
- List your car loans in the template (or any CSV or Excel sheet) with each VIN, loan date and the interest from your lender — and drop it here, or try the sample.
- Pick the tax year and filing status and type your MAGI, then read the deduction, Schedule 1-A lines 23–30 and every check.
- Compare with your lenders' Forms 1098-VLI and copy the lines onto Schedule 1-A.
Why Lientally
For households with one or more new car loans who want the 2025–2028 car loan interest deduction worked out right — which loans qualify, how much and the Schedule 1-A lines — without a subscription or uploading their loans.
Every loan in one list
A CSV or Excel list: each loan's VIN, loan date and the interest from your lender's statement or Form 1098-VLI — or the APR, term and amount financed for an estimate.
Which loans qualify
New, final assembly in the US, under 14,000 lbs, personal use, loan after 2024. Used vehicles, leases and business loans are left out with the reason.
VIN check digit
Each VIN's 9th character is recomputed, so a typo shows before it brings a CP321N notice.
Trade-ins, refinances, business use
Negative equity and refinance cash-out are taken out pro rata, and business interest goes in column (ii).
Cap and phaseout
The $10,000 cap and the $200 per $1,000 MAGI phaseout over $100,000 ($200,000 joint), straight onto lines 23–30.
Print or export
Print the worksheet for your tax preparer, or with Pro get the Excel workbook, a payment schedule CSV and the loans CSV.
Simple pricing
Free for the deduction, the Schedule 1-A lines and every check. Pro for every loan on screen, all four tax years and the exports.
Free
- Any number of loans
- The deduction, Schedule 1-A lines 23–30 and every check
- First 2 loans and 2 tax years, print with a footer
- No signup, nothing uploaded
7-day pass
- 7 days of Pro, no subscription
- Every loan and all four tax years, print without footer
- Excel workbook and payment schedule CSV
- Loans CSV
Pro Yearly Best value
- Everything in Pro
- Every tax season through 2028
- Costs less than 6 months of monthly
Prices in USD. Secure checkout and sales tax handled by our payment partner. Already bought? Enter your license key.
Tools & guides
- Car loan interest deduction for every loan in one worksheet
- Schedule 1-A Part IV, line by line
- Does your car loan qualify for the interest deduction?
- The Car Loan Interest Phaseout: $200 per $1,000 Over $100,000
- Negative Equity, Add-ons and Refinances: What Car Loan Interest Counts
- Form 1098-VLI and the CP321N Notice: Getting the VIN Right
- When you have more than one car loan: an alternative to Does My Car Qualify
FAQ
Is my data uploaded?
No. Your files are read by JavaScript in your browser tab and never sent to us or anyone else. Loans and VINs aren't stored, so closing the tab clears them. Settings can be saved in this browser.
What does Lientally do?
It reads a list of your car loans, checks which qualify for the car loan interest deduction (IRC §163(h)(4)), takes out non-vehicle amounts and business use, applies the $10,000 cap and the MAGI phaseout, and fills in Schedule 1-A lines 23–30 for 2025 through 2028.
Which loans qualify?
A loan taken out after December 31, 2024 to buy a new car, SUV, van, pickup or motorcycle under 14,000 lbs GVWR, with final assembly in the United States, for personal use, secured by the vehicle. Leases, used vehicles and business or fleet loans don't qualify.
How is the phaseout worked out?
$200 for each $1,000, or part of $1,000, of modified AGI over $100,000 ($200,000 married filing jointly). Married filing separately: $100,000 and a separate $10,000 cap per spouse.
What's free?
Importing any number of loans, the deduction, Schedule 1-A lines 23–30, every check, the first 2 loans and the first 2 tax years on screen and in print (with a footer). Pro shows and prints everything and exports the Excel workbook and both CSVs.
Where does the interest come from?
Your lender's statement or Form 1098-VLI if you have it. Otherwise Lientally estimates it from the amount financed, APR, term and first payment date; late or extra payments change the real figure.
What isn't covered?
State taxes, vehicles bought for a business, loans from related parties, and the 2026 form's line numbers if they change. Your lender's 1098-VLI and a tax professional come first.
Is this tax advice?
No. Lientally applies the rules it describes to the numbers you provide. It is a worksheet to check against your lenders' figures.