Car Loan Interest Deduction: Final IRS Rules, Income Limits, and California Treatment

The IRS has finalized regulations for the new federal car loan interest deduction. Eligible taxpayers may deduct up to $10,000 annually on qualifying vehicle loans, subject to income limitations beginning above $100,000 for single filers and $200,000 for joint filers. Learn the rules for vehicle eligibility, refinancing, personal use, and California nonconformity.