IRS says lenders can offer an online portal to buyers for spotting total amount of interest paid on new car loans in 2025.

Borrowers who took out a car loan in 2025 will need to file a new Schedule 1-A with their 2025 federal income tax returns that will be filled out next year to claim the deduction.

The Internal Revenue Service gave auto lenders some idea of how they'll handle a brand new deduction for car loan interest in 2025.

Lenders must provide appropriate information so that consumers who took out a car loan in 2025 to buy new cars with final assembly in the United States can claim the deduction on their 2025 federal income tax returns next year, if they qualify.

Yet, we're dealing with a quick transition involving a tax change that was signed into law by President Donald Tru

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