Other deduction changes 2025

January 2026

Additional senior deduction and interest deduction. For the next three years, an additional $6000 deduction for taxpayers over 65 years of age. The deduction phases out over 75K/100K/200K income limits. This deduction reduces taxable income.

Loan Interest: For the next five years there is an above the line deduction for interest paid on a car loan. This amount can be up to a $10,000 deduction for a new car purchased for personal use after December 31, 2024 and before January 1. 2029. It cannot be a used car and cannot be a lease and final assembly must have occurred in the United States.