Form 1098-VLI: the new vehicle loan interest statement

Form 1098-VLI is the form your car lender sends to report how much loan interest you paid. It’s new, it starts with the 2026 tax year, and it’s the main number you’ll use for the car loan interest deduction.

Last checked October 2026. Box details follow the IRS draft form and the 2026 instructions; the final form could differ slightly.

Who sends it, and when

Who: any business that receives $600 or more of interest in a year on a qualifying car loan from an individual, including banks, credit unions, finance companies and dealers that finance the sale.
Per loan: the $600 threshold applies to each loan separately. Each qualifying loan gets its own form.
First year: the form covers interest paid in 2026, so expect it in early 2027. Lenders normally send 1098-series forms by January 31.
Who receives it: the borrower listed as the “payer of record.” With co-borrowers, only one form is issued.

For your 2025 tax return there is no 1098-VLI

Under IRS transition relief (Notice 2025-57), lenders didn’t have to send the form for 2025. Instead, they could show your total 2025 interest in an online account, a monthly statement or an annual statement. Use that number for your 2025 deduction.

What each box means

Based on the IRS draft form.

Box 1: Vehicle loan interest the lender received from you during the year. This is your starting number. Lenders should already leave out interest on non-qualifying parts of the loan, such as negative equity from a trade-in.
Box 2a–2d: The vehicle’s year, make, model and VIN. You need the VIN on your tax return.
Box 3a: Loan origination date. It must be after December 31, 2024 to qualify.
Box 3b: Date the lender acquired the loan, if it bought the loan from another lender.
Box 4: Outstanding principal at the start of the year (or when the loan began or was acquired).
Box 5: Refund of overpaid interest. It isn’t deductible and may need to be reported as income.
Box 6: Checked if the lender says the car’s original use began with you (it was new).
Box 7: Checked if the lender says the car’s final assembly was in the U.S.

Getting a 1098-VLI doesn’t prove your car qualifies

The form itself warns that you may not be able to deduct the full amount. The deduction depends on your income, the vehicle and how much interest you actually paid, and you are responsible for claiming it correctly. Check the rules yourself, even if boxes 6 and 7 are checked.

Check eligibility with your VIN

How to use it on your return

Find Schedule 1-A, Part IV (“No Tax on Car Loan Interest”) in your tax software or on the IRS form.
Enter the VIN from box 2d.
Enter the interest from box 1. If you also deduct some of that interest as a business expense (for example on Schedule C), that part goes in its own column and is subtracted.
The form caps the interest at $10,000 and then reduces it if your modified AGI is over $100,000 ($200,000 married filing jointly).
The result is subtracted from your income whether or not you itemize.

Our checker does steps 3 and 4 for you as an estimate.

Missing or wrong form?

No form arrived: your interest may have been under $600, or the lender may not consider the loan qualifying. Ask your lender, and check your online account or annual statement for the interest you paid.
Amount looks wrong: compare it with your statements and ask the lender for a corrected form.
Box 7 not checked but your car was assembled in the U.S.: you can rely on the NHTSA VIN decoder or your window sticker. Keep a copy with your records.

These are common-sense steps, not official IRS instructions.

1098-VLI vs. the mortgage Form 1098

Mortgage interest from Form 1098 only helps if you itemize. Car loan interest from Form 1098-VLI can be deducted with the standard deduction.
The 1098-VLI lists the vehicle and its VIN and has checkboxes for new vehicle and U.S. assembly.
Car loan interest has a $10,000 yearly cap and an income phase-out.