Form 1098-VLI: The New Car Loan Interest Tax Form
Starting with the 2026 tax year, your lender must send you Form 1098-VLI showing the car loan interest you paid. Here is everything you need to know.
What is Form 1098-VLI?
Form 1098-VLI stands for Vehicle Loan Interest statement. It is a new IRS form that car loan lenders must send to borrowers who paid $600 or more in qualified interest during the tax year. You use the number on this form to fill out Part IV of Schedule 1-A and claim the car loan interest deduction.
When will you get it?
Your lender must mail or deliver Form 1098-VLI by January 31 of the following year. So for interest paid in 2026, expect the form by January 31, 2027. For 2025, the form was not required. Lenders could use a regular statement, monthly statement, or online portal instead.
What it shows
The form includes the total amount of qualified interest you paid during the year, the outstanding principal balance at the start of the year, the loan origination date, and the year, make, model, and VIN of your vehicle. You need the interest amount and VIN for Schedule 1-A.
What if you did not get one for 2025?
The IRS gave lenders transition relief for the 2025 tax year. Your lender was only required to give you a statement showing total interest paid, which could be a monthly statement, an annual summary, or an online account page. If you cannot find the number, call your lender or check your online loan account. The interest total is there.
What if the numbers look wrong?
Check that the VIN on the form matches your vehicle. Verify the interest amount against your monthly statements. If something is off, contact your lender before filing. The IRS expects the form to match what you report on Schedule 1-A.
Does every car loan get a 1098-VLI?
No. The form only applies to loans on qualified vehicles where you paid at least $600 in interest. If your car is used, leased, not assembled in the US, or bought before 2025, you will not get a 1098-VLI because the loan does not qualify for the deduction. Check if your car qualifies with our free VIN checker.
How it connects to your tax return
The flow is simple. Your lender sends you Form 1098-VLI. You take the interest amount and VIN from it. You enter those on Schedule 1-A, Part IV. Schedule 1-A calculates your deduction after the income phase out. The total flows to your Form 1040 and reduces your taxable income.
Estimate your savings now
You do not need to wait for the form to estimate your deduction. If you know roughly how much interest you are paying this year, the car loan deduction calculator shows your savings in seconds. It also checks your VIN against the official government database to confirm US assembly.
Frequently asked questions
Is Form 1098-VLI the same as Form 1098?
No. Form 1098 reports mortgage interest on your home. Form 1098-VLI is a new, separate form specifically for car loan interest under the OBBBA deduction.
Do I need a 1098-VLI to claim the car loan deduction?
For tax year 2025, no. You can use any lender statement showing total interest paid. For 2026 and later, lenders are required to send Form 1098-VLI if you paid $600 or more in qualified interest.
What if my lender does not know about this form?
Some banks and credit unions are still updating their systems. The IRS has acknowledged this. Ask your lender for a statement showing total interest paid on your auto loan during the year, and use that number on Schedule 1-A.