Sources

Numbers on this site are taken from the documents below. The 2026 Schedule 1-A is an IRS draft created June 16, 2026, and is labeled that way wherever its line numbers appear. Pages were reviewed on October 31, 2026.

• Public Law 119-21, §70203 (July 4, 2025). The One, Big, Beautiful Bill Act. Section 70203 added IRC §163(h)(4), amended §63(b), and added §6050AA.
• Final regulations, Car Loan Interest Deduction (Sept. 8, 2026). Treasury Decision published at 91 FR. Effective November 9, 2026. Treas. Reg. §§1.163-16 and 1.6050AA-1 apply to tax years 2025–2028.
• IRS Topic No. 505, Interest expense. IRS summary of the 2025–2028 deduction, the $10,000 cap, first-lien requirement, and U.S. final assembly.
• IRS newsroom: Working Families Tax Cuts. Qualified vehicle types, the VIN and label tests for final assembly, and refinance treatment.
• IRS newsroom: What you will need to file. Documents for the qualified passenger vehicle loan interest deduction, reported on Schedule 1-A, Part IV.
• IRS FS-2026-04, Schedule 1-A. How the four additional deductions, including no tax on car loan interest, are claimed.
• 2025 Schedule 1-A (Form 1040). Part I MAGI lines 1–3 and Part IV lines 22–30. Line 38 is the total additional deductions.
• 2025 Instructions for Form 1040. Line 13b comes from Schedule 1-A, line 38. The Schedule 1-A instructions define QPVLI, personal use, and the phase-out.
• 2026 draft Schedule 1-A (created June 16, 2026). Draft — do not file. Part IV is lines 28–36. Line 44 goes to Form 1040 line 13a on this draft. Line numbers can change.
• Publication 6126 (Rev. 10-2026). One Big Beautiful Bill Act tax changes, including the vehicle loan interest deduction.
• Publication 501 (2025). 2025 standard deduction tables, including $31,500 for married filing jointly or qualifying surviving spouse.
• Revenue Procedure 2025-32. 2025 standard deduction as amended by OBBBA, and the inflation-adjusted 2026 basic and additional standard deduction.
• IR-2025-103 (Oct. 9, 2025). IRS news release of the 2026 standard deduction, including $32,200 for married filing jointly. Those amounts apply to returns filed in 2027.
• Instructions for Form 1098-VLI (Rev. December 2026). IRS continuous-use instructions labeled December 2026 (HTML). Use for calendar year 2026 and later until superseded. PDF: irs.gov/pub/irs-pdf/i1098vli.pdf. About page last reviewed/updated by IRS on October 1, 2026. Who files, the $600-per-loan threshold, boxes 1–7.
• Form 1098-VLI, Vehicle Loan Interest Statement (current PDF). Current form PDF linked from the IRS About Form 1098-VLI page.
• About Form 1098-VLI (IRS). IRS landing page for the form and instructions. Page last reviewed or updated October 1, 2026.
• NHTSA VIN Decoder and vPIC API. Plant of manufacture. The IRS says taxpayers may rely on the VIN plant or the vehicle information label.