New IRS Auto Loan Deduction
Learn how to see if you qualify and what documents you’ll need.
Good news! You may qualify for a new federal tax deduction on your Embold auto loan.
Starting in 2025, the IRS is allowing individuals to deduct the interest paid on new personal-use auto loans—even if you don’t itemize your taxes.
What Qualifies?
To be eligible, your loan must:
- Originate after December 31, 2024
- Be for a new vehicle (not used)
- Be for personal use only (not business)
- Be secured by a lien on the vehicle
- The vehicle must have final assembly in the U.S.
Not Eligible:
- Leases
- Used vehicles
- Commercial or business vehicles
How Much Can I Deduct?
- Up to $10,000 per year in interest
- Deduction phases out for incomes above:
- $100,000 (single)
- $200,000 (joint)
What Will I Need to Claim the Deduction?
- Your year-end loan statement
- Your Vehicle Identification Number (VIN)
- Documentation showing the loan meets IRS requirements
Please note: Embold will not issue a 1098 form for this deduction. The IRS has not created one, and it is not required.
Where Can I Find My VIN?
Your 17-digit Vehicle Identification Number (VIN) can be found:
- On the dashboard, visible through the driver-side windshield
- On the driver-side door frame label
- On your auto insurance policy
- On your vehicle registration
- On your purchase paperwork
How Do I Check if My Vehicle Qualifies?
Use the official NHTSA VIN Decoder Tool to check your vehicle’s plant of manufacture:
Embold cannot check or verify your VIN for you.
For privacy and liability reasons, we’ll guide you on how to find your VIN, but you must enter and interpret the results yourself.
Need Help?
We’re happy to help you access your loan documents or year-end statement.
Reach out via secure message in Digital Banking, call us, or visit your nearest branch.
Reminder:
We aren’t tax experts.
Please consult a qualified tax advisor or visit irs.gov for full guidance.