Drivers May Now Qualify for a New Car Loan Interest Tax Break

Drivers may now qualify for a new car loan interest tax break

Wheeling, W.Va (WTRF) - Buying a new car may come with an unexpected bonus at tax time this year under the One, Big, Beautiful Bill. The Treasury Department and IRS have issued new guidance allowing taxpayers to deduct interest paid on certain car loans. The deduction applies to loans taken out after December 31st, 2024, [...]

Treasury, IRS provide guidance on the new deduction for car loan interest under the One, Big, Beautiful Bill

IR-2025-129, Dec. 31, 2025 — The Department of the Treasury and the Internal Revenue Service today provided guidance on the “No Tax on Car Loan Interest” provision enacted under the One, Big, Beautiful Bill.

Millions Of Drivers To Benefit From Major New Deduction, IRS Announces

Millions of drivers nationwide will see significant tax relief this year, with the IRS announcing a new deduction.The updates follow the passage of the "One Big Beautiful Bill Act," signed into law on July 4, 2025, which brings sweeping changes for taxpayers filing 2025 returns during the 2026 tax season.Starting with car loans issued after Dec. 31, 2024, eligible taxpayers can now deduct up to $10,000 in interest paid annually on new, US-assemb…