Vehicle Loan Interest Deduction | Member FAQ
For informational purposes only. Not tax or legal advice. Please consult a qualified tax professional for your individual situation.
1. Will I receive a tax form from the credit union for vehicle loan interest?
The IRS did not provide a specific tax form requirement for 2025. Members can calculate interest paid on an eligible New Vehicle loan by adding all interest from payments made in 2025 on the loan. Digital banking will allow you to go back to January 1 or the open date of the loan, if after January 1, for that loan, to see all transaction information.
Beginning with tax year 2026, members with eligible vehicle loans may receive an IRS Form 1098-VLI showing the amount of interest paid. This will be mailed/available electronically by January 31 each year, beginning in 2027.
2. How do I know if my vehicle loan qualifies for this new deduction?
The IRS, not the credit union, determines which loans and vehicles qualify. Generally, the deduction may apply to select personal-use vehicle loans originated after December 31,
2024. We recommend reviewing eligibility with a tax professional and reading more on the One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors page on the IRS website.
3. Does the credit union decide if my interest is deductible?
No. The credit union’s role is to provide accurate reporting of interest paid on your loan. Only the IRS (through the tax code) and your tax professional can determine whether your interest is deductible.
4. What if my year-end statement (or designated tax form) is not received or looks incorrect?
Contact us directly. We can research your account and provide corrected reporting if necessary.
5. Can the credit union help me calculate my tax deduction?
No. We cannot provide tax advice or calculate your deduction. Please use your year-end statement (or designated tax form) when preparing your return or sharing it with your tax professional.
6. Who should I talk to if I have more questions about how this affects my taxes?
A qualified tax professional. They can confirm whether your loan and income level make you eligible for the deduction.
Additional Resources
VIN Decoder | NHTSA
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