Episode 66: In this episode, Timalyn continues the discussion begun in Episode 64 about the One Big Beautiful Bill Act. Timalyn opens up the episode with a reminder of what the One Big Beautiful Bill Act is. Timalyn also warns that this tax year may not be the one where you want to let someone who is not a professional handle your preparation.
Today, she's explaining the car loan interest deduction. If there is any part of this new tax law that you'd like to hear her cover, please let us know.
Car Loan Interest Deduction
This new deduction is effective for tax years 2025 - 2028.
The vehicle must be purchased new for personal use, and leased on vehicles do not count for this deduction.
The maximum deduction is $10,000. The deduction begins phasing out for single and head of household taxpayers with a modified adjusted gross income of $100,000. That amount doubles to $200,000 for married taxpayers who file jointly. This deduction is not available for taxpayers who are married but file separately.
This deduction is only for qualified vehicles. The vehicle has to have final assembly in the United States. It has to be less than 14,000 pounds, so it can be any of the following:
Car
Minivan
Motorcycle
Pick-up truck
SUV
To qualify for the deduction, the loan has to have originated after December 31st, 2024, for personal use. Used vehicles do not qualify for the deduction. The loan must also be secured by a lien on the vehicle.
Lenders will be responsible for reporting the interest paid to both the IRS and the taxpayer on an interest statement.
Timalyn warns taxpayers that this is the year they may not want to let a family member who is not a professional handle their taxes. There are a lot of mid-year changes that, if not handled correctly, can lead to tax issues.
To stay up to date with these changes, Timalyn lets listeners know that Tax Tips with Timalyn will be coming back. There will be different paid versions to subscribe to relevant information for individual taxpayers and business taxpayers.
Need Tax Help Now?
If you need answers to your tax debt questions, book a consultation with Timalyn via her Bowens Tax Solutions website. Click this link to book a call.
Please consider sharing this episode with your friends and family. There are many people dealing with tax issues, and you may not know about it. This information might be helpful to someone who really needs it. After all, back taxes shouldn't ruin their life either.
As we conclude Episode 65, we encourage you to connect with Timalyn on social media. You'll be able to subscribe to this podcast on Spotify, Apple Podcasts, YouTube, and many other podcast platforms.
Remember, Timalyn Bowens is America's Favorite EA, and she's here to fill the tax literacy gap, one taxpayer at a time. Thanks for listening to today's episode.
For more information about tax relief options or filing your taxes, visit https://www.Bowenstaxsolutions.com/ .
If you have any feedback or suggestions for an upcoming episode topic, please submit them here: https://www.americasfavoriteea.com/contact.
Disclaimer: This podcast is for informational and educational purposes only. It provides a framework and possible solutions for solving your tax problems, but it is not legally binding. Please consult your tax professional regarding your specific tax situation.
