IRS Releases Final Form For New Car Loan Interest Deduction
By CU Today Staff —
WASHINGTON--The IRS Friday released a final Form 1098-VLI, the form credit unions need to fill out to comply with the car loan interest deduction relief enacted in H.R. 1. The IRS also published an instructions document, America's Credit Unions reported.
Under the rule, certain taxpayers can deduct an amount up to $10,000 of qualified passenger vehicle loan interest. The deduction rules apply to taxable years beginning after Dec. 31, 2024, and the reporting rules under section 6050AA apply to interest received in calendar years 2025 through 2028, ACU noted.
The IRS released the final rule earlier this month. It is effective Nov. 7 and includes many America’s Credit Unions-sought changes from the original, ACU noted.
America’s Credit Unions also has a Final Rule Summary available.
Originally reported by CU Today.