New Car Loan Interest Tax Deductions FAQs
At Centris Federal Credit Union, weāre committed to keeping our members up to speed on the latest financial news. With recent federal updates regarding car loan interest deductions, weāve compiled these FAQs to help you navigate the 2025 tax season.
To determine if you are eligible to claim a deduction on your federal return, Centris Federal Credit Union recommends you speak with a qualified tax professional.Ā
FAQs
What are the eligibility requirements?
You may be eligible for this deduction if you answer yes to all of the following requirements:
- Did you purchase a NEW vehicle in 2025?
- Are you the original owner of the vehicle?
- Is this vehicle a Car, SUV, Pickup, Minivan, Van, or Motorcycle?
- Is this vehicle used solely for personal purposes?
- Was this vehicle assembled in the United States? If you are unsure, use this VIN Decoder to verify.
- Is this vehicle gross weight rating under 14,000 pounds? If unsure, use this VIN Decoder to verify.
Where do I find information on how much interest I paid on my vehicle loan in 2025?
You can find the total 2025 interest paid on your Centris Federal Credit Union vehicle loan on your December 2025 statement. If you paid at least $600 in interest and your vehicle appears to meet the eligibility requirements, Centris Federal Credit Union mailed you a letter that contains the total interest paid and your vehicle’s VIN. You can also find the prior year and year-to-date interest paid on your vehicle loan via online and mobile banking.
Will I receive a 1098-VLI form for my 2025 taxes?
Since 2025 is a transition year for these new federal rules, the IRS hasn’t released an official tax form for auto loan interest just yet. Because of this, Centris and most other financial institutions will begin issuing Form 1098-VLI starting with the 2026 tax year. For your 2025 filings, the IRS has confirmed that the interest details found on your December 2025 statement provide all the information youāll need. If you paid at least $600 in interest and your vehicle appears to meet the eligibility requirements, Centris Federal Credit Union mailed you a letter that contains the total interest paid and your vehicle’s VIN.Ā
What if I have more questions?
If you’re unsure how these rules apply to you, a qualified tax professional can help determine eligibility and proper reporting. For full details and the requirements of these tax benefits under the Internal Revenue Code (IRS) Ā§163(h)(4) as amended by the One Big Beautiful Bill Act (Public Law 119-21), you can visit the IRS website. If your questions are related to your existing Centris Federal Credit Union auto loan or you’d like to refinance with us, you can give us a call at 402-334-7000 or visit any of our branch locations!