Understanding Form 1098-VLI: Vehicle Loan Interest Statement

If you financed a qualified, American-made vehicle after December 31, 2024, your auto lender is required to report the interest you paid to both you and the IRS. This reporting is handled via Form 1098-VLI (Vehicle Loan Interest Statement).

This document is essential for filing your tax return and claiming the Section 163 auto interest deduction.

When Will I Receive Form 1098-VLI?

Lenders are required to mail or electronically deliver Form 1098-VLI by January 31 of the year following the tax year in which the interest was paid. For example, interest paid during the 2025 tax year will be reported on a statement sent in January 2026.

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Important Boxes on Form 1098-VLI

When you receive the form, check the following key fields:

• Box 1 (Qualified Interest Paid): The total dollar amount of interest you paid on the loan during the calendar year. This is the figure you will enter on your tax return.
• Box 2 (Vehicle Identification Number - VIN): The 17-character identifier for your vehicle. The IRS will cross-reference this VIN with NHTSA databases to verify final assembly in the USA.
• Box 3 (Origination Date): The date the loan was finalized. Must be after December 31, 2024.
• Box 4 (First Lien Indicator): A checkbox indicating whether the loan is secured by a first lien on the vehicle. If unchecked, the loan does not qualify.

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What to Do If You Don’t Receive the Form

If you believe your loan qualifies but you have not received Form 1098-VLI by mid-February:

1. Log in to your auto lender’s online portal and check the “Tax Statements” or “Documents” section.
2. Verify that your vehicle was indeed assembled in the USA (use our homepage checker to double-check).
3. Contact your lender’s customer service department to confirm if they have filed the form with the IRS.

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Sourced References

• IRS General Instructions for Certain Information Returns: Regulations governing lender reporting requirements.
• Proposed Form 1098-VLI Draft: IRS specifications for loan interest statements.

Disclaimer: Calculations, eligibility estimations, and final assembly verdicts provided by this guide are based on current proposed IRS regulations and are for informational purposes only. This does not constitute tax, legal, or financial advice. Please consult a licensed tax professional or CPA before claiming any deductions on your federal tax return.