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Meta TitleTax season: 2 car loan deduction changes you should know
Meta DescriptionTax season is here, and several updates have been made to deductions, tax credits, and more. Jackson Hewitt Tax Service chief tax information officer Mark Steber joins Market Catalysts host Julie Hyman to elaborate on the changes to car loan deductions that taxpayers should be aware of. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts.
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Tax season is here, and several updates have been made to deductions, tax credits, and more. Jackson Hewitt Tax Service chief tax information officer Mark Steber joins Market Catalysts host Julie Hyman to elaborate on the changes to car loan deductions that taxpayers should be aware of. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts . 00:00 Speaker A something else that I know there's a change on is the change on is the car loan interest. Um so Mark, what what do people need to be aware of there? 00:09 Mark Well, a couple of things. Uh one, it's not automatic. I'm surprised at how many taxpayers just think if you file your tax return like the stimulus payments, you're just going to get these tax breaks. You have to actually put them on your tax return. And an important point to also note is, you do not have to itemize for any of these big four, uh the overtime, the tips, the automobile loan interest deduction and even the senior deduction. They go on a separate place, new form, new line. Now, the automobile interest, it's really an important item because if you take a loan out to buy a car and tens of millions of people do that every year, then you can take the auto loan interest as a deduction. And again, I emphasize you do not have to itemize as was pointed out earlier, you know, a lot of people don't itemize today. They take that large standard deduction. Well, these new benefits don't have any consequence on that. So if you bought a car in 2025 and you financed it, which many do, watch for that auto loan, the interest can be tax deductible regardless of whether you itemize. Now, there are some, you know, requirements that has to be final assembled in the United States, you know, and and there's some income limitations if you're high income, they phase out because a lot of these benefits don't ennu over to high income earners. But if you're just a regular person, bought a car, financed it and it was final assembled here, and that's a lot of cars, you know, you've got a brand new tax break up to $10,000. And if you're in a 30% tax bracket, that's another $3,000 of tax refund potential and and those numbers are pretty big.
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[UPGRADE\_TO\_PREMIUM](https://finance.yahoo.com/about/plans/select-plan/?.done=https%3A%2F%2Ffinance.yahoo.com%2Fvideo%2Ftax-season-2-car-loan-103054556.html&ncid=_1088_DCM-PARTNER_NATIVE_US_NoTargeting_HeaderEyebrow_YahooFinanceUsers___RightRail_Header-UpgradetoPaidSubscriptionButton__N_) FAILSAFE\_MSG [![Yahoo Finance Video](https://s.yimg.com/ny/api/res/1.2/nt5dGx4HiuaxJyO1G5ipxw--/YXBwaWQ9aGlnaGxhbmRlcjt3PTIzMjtoPTQ4/https://s.yimg.com/os/creatr-uploaded-images/2020-12/02246f50-3412-11eb-bfdd-de89f8b3b8b8)](https://finance.yahoo.com/ "Yahoo Finance Video") # Tax season: 2 car loan deduction changes you should know [Yahoo Finance Video](https://finance.yahoo.com/author/yahoo-finance-video) AND [Julie Hyman](https://finance.yahoo.com/author/julie-hyman) Tue, March 10, 2026 at 3:30 AM PDT Tax season is here, and several updates have been made to deductions, tax credits, and more. Jackson Hewitt Tax Service chief tax information officer Mark Steber joins Market Catalysts host [Julie Hyman](https://finance.yahoo.com/author/julie-hyman/?fr=sycsrp_catchall) to elaborate on the changes to car loan deductions that taxpayers should be aware of. To watch more expert insights and analysis on the latest market action, check out more [Market Catalysts](https://finance.yahoo.com/videos/series/market-catalysts/). VIDEO\_TRANSCRIPT 00:00 Speaker A something else that I know there's a change on is the change on is the car loan interest. Um so Mark, what what do people need to be aware of there? 00:09 Mark Well, a couple of things. Uh one, it's not automatic. I'm surprised at how many taxpayers just think if you file your tax return like the stimulus payments, you're just going to get these tax breaks. You have to actually put them on your tax return. And an important point to also note is, you do not have to itemize for any of these big four, uh the overtime, the tips, the automobile loan interest deduction and even the senior deduction. They go on a separate place, new form, new line. Now, the automobile interest, it's really an important item because if you take a loan out to buy a car and tens of millions of people do that every year, then you can take the auto loan interest as a deduction. And again, I emphasize you do not have to itemize as was pointed out earlier, you know, a lot of people don't itemize today. They take that large standard deduction. Well, these new benefits don't have any consequence on that. So if you bought a car in 2025 and you financed it, which many do, watch for that auto loan, the interest can be tax deductible regardless of whether you itemize. Now, there are some, you know, requirements that has to be final assembled in the United States, you know, and and there's some income limitations if you're high income, they phase out because a lot of these benefits don't ennu over to high income earners. But if you're just a regular person, bought a car, financed it and it was final assembled here, and that's a lot of cars, you know, you've got a brand new tax break up to \$10,000. And if you're in a 30% tax bracket, that's another \$3,000 of tax refund potential and and those numbers are pretty big. 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Readable Markdown
Tax season is here, and several updates have been made to deductions, tax credits, and more. Jackson Hewitt Tax Service chief tax information officer Mark Steber joins Market Catalysts host [Julie Hyman](https://finance.yahoo.com/author/julie-hyman/?fr=sycsrp_catchall) to elaborate on the changes to car loan deductions that taxpayers should be aware of. To watch more expert insights and analysis on the latest market action, check out more [Market Catalysts](https://finance.yahoo.com/videos/series/market-catalysts/). 00:00 Speaker A something else that I know there's a change on is the change on is the car loan interest. Um so Mark, what what do people need to be aware of there? 00:09 Mark Well, a couple of things. Uh one, it's not automatic. I'm surprised at how many taxpayers just think if you file your tax return like the stimulus payments, you're just going to get these tax breaks. You have to actually put them on your tax return. And an important point to also note is, you do not have to itemize for any of these big four, uh the overtime, the tips, the automobile loan interest deduction and even the senior deduction. They go on a separate place, new form, new line. Now, the automobile interest, it's really an important item because if you take a loan out to buy a car and tens of millions of people do that every year, then you can take the auto loan interest as a deduction. And again, I emphasize you do not have to itemize as was pointed out earlier, you know, a lot of people don't itemize today. They take that large standard deduction. Well, these new benefits don't have any consequence on that. So if you bought a car in 2025 and you financed it, which many do, watch for that auto loan, the interest can be tax deductible regardless of whether you itemize. Now, there are some, you know, requirements that has to be final assembled in the United States, you know, and and there's some income limitations if you're high income, they phase out because a lot of these benefits don't ennu over to high income earners. But if you're just a regular person, bought a car, financed it and it was final assembled here, and that's a lot of cars, you know, you've got a brand new tax break up to \$10,000. And if you're in a 30% tax bracket, that's another \$3,000 of tax refund potential and and those numbers are pretty big. *** - [![AI is reshaping 2025 taxes: 3 risks to know before you file](data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAAAXNSR0IArs4c6QAAAA1JREFUGFdjCAgI+A8AA9QB8MyYtpoAAAAASUVORK5CYII=)](https://finance.yahoo.com/personal-finance/taxes/article/ai-is-reshaping-2025-taxes-3-risks-to-know-before-you-file-120000919.html "AI is reshaping 2025 taxes: 3 risks to know before you file") - [![I'm 62 With \$900,000 in My 401(k). Should I Convert \$90k Annually to Reduce Taxes and RMDs?](data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAAAXNSR0IArs4c6QAAAA1JREFUGFdjCAgI+A8AA9QB8MyYtpoAAAAASUVORK5CYII=)](https://finance.yahoo.com/news/im-62-900-000-401-142054024.html "I'm 62 With $900,000 in My 401(k). Should I Convert $90k Annually to Reduce Taxes and RMDs?") - [![I'm 55 With \$900,000 in an IRA. Should I Convert \$100,000 Annually to a Roth to Reduce RMDs?](data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAAAXNSR0IArs4c6QAAAA1JREFUGFdjCAgI+A8AA9QB8MyYtpoAAAAASUVORK5CYII=)](https://finance.yahoo.com/news/im-55-900-000-ira-122500700.html "I'm 55 With $900,000 in an IRA. Should I Convert $100,000 Annually to a Roth to Reduce RMDs?") - [![Ask an Advisor: I Pay a 0.75% Fee on \$1.5M Invested. How Do I Know If It's Worth It?](data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAAAXNSR0IArs4c6QAAAA1JREFUGFdjCAgI+A8AA9QB8MyYtpoAAAAASUVORK5CYII=)](https://finance.yahoo.com/news/ask-advisor-1-5m-invested-113644080.html "Ask an Advisor: I Pay a 0.75% Fee on $1.5M Invested. How Do I Know If It's Worth It?")
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Content Metadata
Languageen-us
AuthorYahoo Finance Video
Publish Time2026-03-10 10:30:54 (1 month ago)
Original Publish Time2026-03-10 10:30:54 (1 month ago)
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