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Form 1098-VLI: the new vehicle loan interest statement

Last reviewed 2026-10-17

Form 1098-VLI is the statement your auto lender sends to report the interest you paid on a qualifying vehicle loan. It's the number you use to claim the car loan interest deduction.

Who sends it, and when

  • Who: any lender (bank, credit union, captive finance company or online lender) that receives $600 or more of interest during the year on a single qualifying loan: one for a new, US-assembled vehicle bought mainly for personal use.
  • To whom: the borrower of record on the loan.
  • When: by January 31. The first full year of forms covers 2026 interest and arrives by January 31, 2027.
  • 2025 was a transition year. The IRS didn't require the form itself for 2025. Lenders instead had to make a statement of the year's interest available to borrowers by January 31, 2026, often through a year-end summary or online account.

What's on it

  • The interest you paid during the year, and any refund of overpaid interest.
  • The loan's start date and the date you acquired the vehicle.
  • The outstanding principal at the start of the year (or when the loan began).
  • The vehicle's identification number (VIN) and description.
  • Checkboxes confirming that the vehicle's original use began with you and that its final assembly took place in the United States.
Check that the VIN on the form matches your vehicle. You need to put the VIN on your tax return to claim the deduction.

What to do with it

  1. Check the details. Lenders are supposed to issue the form only for loans they treat as qualifying. You're still responsible for the parts only you know: that the vehicle was for personal use, that you paid the interest, and your income. If in doubt about the assembly location, check your VIN.
  2. Work out your deduction. Only the first $10,000 per return counts, and it phases out above $100,000 of modified AGI ($200,000 joint). Use the calculator.
  3. Claim it on your return in Part IV of Schedule 1-A (Form 1040), with the VIN. Tax software asks for these figures in its deductions section.

You can deduct only interest on a loan you took out and actually paid. If someone else is the borrower of record, the form goes to them.

Didn't get one?

You may not get a form if you paid less than $600 of interest on that loan, or if the loan doesn't qualify (for example, a lease or a used vehicle). Check your lender's online account, then ask the lender for a statement of the interest you paid, and keep your loan records with your tax files.

Sources: Form 1098-VLI and its instructions; Treasury regulations §1.6050AA-1 (T.D. 10054, September 2026); IRS Notice 2025-57. Not tax advice. Last reviewed 2026-10-17.