Tax Break for New Car Buyers from Last Year

A new tax deduction for auto loans allows eligible taxpayers to deduct up to $10,000 in interest on loans for new American-made cars purchased between January 1, 2025, and December 31, 2028. This initiative, part of a bill signed by President Trump, aims to reduce car ownership costs amidst rising auto payments. Eligibility is limited to single filers with a modified adjusted gross income of up to $100,000 and couples earning up to $200,000. Taxpayers must file a Schedule 1-A form to claim the deduction, which can lead to significant tax savings depending on income and loan size.