Schedule 1-A Part IV, line by line
Each VIN on line 22, the business share in column (ii), the qualifying interest in column (iii), then the cap and the phaseout on lines 23–30.
The lines
- Line 22: each vehicle's VIN with (ii) interest deducted on Schedule C, E or F and (iii) the rest of the qualified interest. More than two vehicles go on an attached statement.
- Line 23: total of column (iii). Line 24: the smaller of line 23 and $10,000.
- Lines 25–29: MAGI, the threshold, the excess, the excess divided by $1,000 and rounded up, times $200.
- Line 30: line 24 minus line 29, not below zero.
A missing or wrong VIN brings a CP321N notice; Lientally checks each VIN's check digit before you file. Line numbers follow the 2025 form; check the 2026 form.
Worked example
The app's sample is a fictional married couple filing jointly with a modified AGI of $214,600 and 5 car loans. A used truck doesn't qualify, a trade-in's negative equity and a refinance's cash-out are taken out pro rata, and business interest goes in column (ii). The 4 qualifying loans add up to $6,953.89 of 2026 interest (line 23). MAGI is $14,600 over the $200,000 threshold, so the deduction drops by 15 × $200 = $3,000, leaving $3,953.89 on Schedule 1-A line 30.
Your loans stay on your computer
Lientally reads your loan list with JavaScript in this browser tab. Nothing is uploaded, and closing the tab clears it.
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.
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.