Banks, Credit Unions Grapple With Auto Loan Tax Break Reporting

Banks, credit unions, and captive finance companies are wrestling with what exactly they need to report to car buyers for the new auto loan interest tax break.

And there isn’t a consensus.

The GOP’s multitrillion dollar tax-and-spending law made it so certain taxpayers in 2025 through 2028 can deduct up to $10,000 in car loan interest for eligible vehicles purchased in those years. The law also established reporting requirements for lenders that receive individual interest of $600 or more on certain loans.

While lenders are required to report interest for loans that were made starting at the beginning of this ...