Did you buy a new car in 2025 or planning to buy one before the end of 2028? If so, the Working Families Tax Cut Act allows you to deduct the interest on that car even if you do not itemize deductions.
To qualify:
The vehicle must not be used more than 50% for business purposes.
The vehicle must be a new car, minivan, SUV, pickup truck, or motorcycle with a vehicle weight of less than 14,000 pounds.
Lastly, the vehicle MUST have had their final assembly in the United States. You look up the VIN number in an online website to find out if it was or if you still have the sticker, it should say where it assembled. https://www.nhtsa.gov/vin-decoder
The deduction is limited to $10,000 per year and phases out completely for single taxpayers whose modified adjusted gross income is greater than $100,000 ($200,000 for married filing joint).
The Working Families Tax Cut Act provides several new deductions to lower income taxes on taxpayers. To find out more about these visit my website markcartercpa.com or make an appointment to discuss how these may affect you and your taxes. The IRS is estimating taxpayer refunds to increase this year by $1000 – $2,000 because of these new provisions. Don’t miss out on your share.