For many Coloradans, a car is not a luxury – it is how you get to work in Limon before sunrise, pick up the kids in Burlington, or make that long drive on I‑70 from Flagler for medical appointments. When money is tight, those car payments and rising interest rates can feel like one more weight on your chest every month.
The new "No Tax on Car Loan Interest" deduction under the One, Big, Beautiful Bill is designed to give some of that breath back. For tax years 2025 through 2028, qualifying taxpayers may deduct up to $10,000 per year in interest on loans for new, made‑in‑America vehicles purchased for personal use, even if they take the standard deduction. The loan must be taken out after December 31, 2024, the car must have final assembly in the U.S., and it must be a true personal‑use vehicle, not a lease or business car.
Here in Colorado, that means families trying to keep an older car alive might finally trade up without feeling guilty about the payment, workers commuting long distances on the Eastern Plains can see some relief from the sting of interest charges, and retirees on fixed incomes can stretch every dollar a bit further.
But as usual, the rules are packed with limits, phase‑outs, and definitions that can trip people up. The deduction is temporary, there are income thresholds, and only the interest portion of your payment counts. Lenders also have new reporting rules, and if the paperwork is wrong or missing, you may miss out on the deduction you were counting on.
How I Help Colorado Taxpayers Stop the Stress and Move Forward with Confidence
Too many people in our Colorado communities feel annoyed and embarrassed about owing taxes – and now worry they will miss this new deduction and face fines, fees, or penalties for getting it wrong. I work with clients to make sure returns are filed correctly and on time, so that shame and worry ends.
If you are already dealing with overwhelming stress from IRS letters or collections, adding a new car loan deduction to the mix can feel paralyzing. I remove that fear of tax liens, interest charges, and money being clawed back by the government, so you can breathe again and know there will be no future tax surprises.
Many of my clients have felt ashamed and frustrated because they have not filed tax returns in years – and now they worry claiming this deduction will trigger an audit or make things worse. I eliminate that shame by helping get unfiled returns handled and building a path forward that restores peace of mind.
You should never feel isolated and victimized having to face the IRS on your own, especially when new tax law changes feel confusing. As a licensed Enrolled Agent and Certified Tax Representation Consultant, I stand beside you so you do not have to navigate the paperwork, the phone calls, or the fear alone.
Finally, I remove that feeling of being exposed and vulnerable about your tax compliance. Instead of feeling inferior or stuck, my clients become confident and optimistic about their financial future – whether that means claiming a car loan deduction correctly, resolving back tax debt, or simply knowing their returns are clean and complete.
If your car payment already keeps you up at night, you should not also lie awake worrying about taxes. Reaching out for help means turning confusion into a clear plan – and turning a necessary car payment into a little more room to breathe in your monthly budget.
Call (719) 765-6739 or visit taxreliefcall.com and let someone who understands both the tax laws and the emotional weight walk this path with you.
Featured in the International Business Times, Marcelino Dodge, EA, CTRC shares how he helps taxpayers break free from IRS stress and rebuild financial confidence — read the full story now.
Learn more on The Tax Answers Advisor podcast.
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