1098 Forms › What is Form 1098-VLI? Vehicle Loan Interest Statement Explained
At a Glance
Understanding IRS Form 1098-VLI
Form 1098-VLI (Vehicle Loan Interest Statement) reports interest a lender received on a specified passenger vehicle loan during the calendar year. Congress created the form as part of the One Big Beautiful Bill Act, which added a temporary federal income tax deduction for qualified passenger vehicle loan interest. Borrowers need the 1098-VLI to substantiate that deduction, much like homeowners use Form 1098 to substantiate mortgage interest.
Along with the interest amount, the form carries identifying details about the loan and the vehicle that secures it: the loan date, the outstanding principal, and the vehicle's year, make, model, and VIN. Two checkboxes indicate whether the vehicle was new when purchased and whether its final assembly occurred in the United States, both of which matter for the borrower's deduction.
Who Must File Form 1098-VLI?
Any lender or other interest recipient that, in the course of its trade or business, receives $600 or more of interest on a specified passenger vehicle loan from an individual during the calendar year must file. That typically includes:
- Banks and credit unions holding auto loans
- Captive finance companies (manufacturer lending arms)
- Specialty auto lenders and loan servicers that collect the interest
- Dealerships that carry their own financing
A copy of the form must also be furnished to the borrower (the payer of record on the loan).
Form 1098-VLI Box Breakdown
| Box | Description |
|---|---|
| 1 | Vehicle loan interest received by lender |
| 2a | Vehicle year |
| 2b | Vehicle make |
| 2c | Vehicle model |
| 2d | Vehicle identification number (VIN) |
| 3a | Loan date (origination of the loan) |
| 3b | Acquisition date (if the loan was acquired from another lender) |
| 4 | Outstanding principal as of January 1, or the origination amount if the loan originated during the year |
| 5 | Refund of overpaid interest |
| 6 | Checkbox: original use of the vehicle began with the purchaser (the vehicle was new) |
| 7 | Checkbox: final assembly of the vehicle occurred in the United States |
For a deeper walkthrough of each field, see our box-by-box 1098-VLI instructions for lenders.
Why the Vehicle Details Matter
The borrower's deduction only applies to a qualified vehicle: generally a new personal-use passenger vehicle whose final assembly occurred in the United States, financed with a loan originated after December 31, 2024. Boxes 6 and 7 capture exactly those two qualification facts, and the VIN ties the loan to a specific vehicle. Lenders should expect borrower questions about these fields at tax time; our guide on the car loan interest deduction and Form 1098-VLI covers the borrower side in detail.
New Form, IRIS-Only Filing
Form 1098-VLI starts with tax year 2026 returns and is e-filed through the IRS Information Returns Intake System (IRIS) exclusively. Unlike the legacy 1098 and 1099 series, there has never been a FIRE transmission path or a Publication 1220 fixed-width layout for this form, so filers cannot fall back on older flat-file pipelines. If your organization is still transitioning off FIRE, see our FIRE to IRIS migration guide.
E-File Form 1098-VLI with BoomTax
BoomTax generates the IRIS XML for Form 1098-VLI and e-files it with the IRS, then delivers borrower copies. Import your loan data, review, and transmit. For the full filing walkthrough, see e-file Form 1098-VLI online.
Import Your Form 1098-VLI Data
You can import your data as Excel, XML, or use files from popular payroll providers like QuickBooks, UKG, ADP, and many more.
Step-By-Step Wizard
We walk you through the process with no complicated jargon. You can also live chat with a real person as you work on your filing for hands-on help.
E-File & Mail Employee Copies
Once your data is loaded, you can e-file and distribute employee copies in minutes.
Filing Deadlines
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February 1, 2027
Borrower Copies
Form 1098-VLI must be furnished to each borrower on or before February 1, 2027 (January 31 falls on a Sunday).
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March 31, 2027
IRS E-File
Form 1098-VLI must be e-filed with the IRS through IRIS on or before March 31, 2027.
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April 30, 2027
8809 Extension
A Form 8809 extension requested by March 31 moves the IRS e-file deadline to April 30, 2027.
Full details for the first filing season are on our Form 1098-VLI due date page.
Frequently Asked Questions About Form 1098-VLI
No. The IRS provided transitional relief for 2025: lenders could satisfy their obligation by simply making the total interest received available to the borrower. Tax year 2026 is the first year the 1098-VLI must actually be filed with the IRS, during the early 2027 filing season.
No. Form 1098-VLI exists only in the IRS IRIS system. There is no FIRE transmission format and no Publication 1220 record layout for it, so it must be e-filed as IRIS XML (or through a provider like BoomTax that files IRIS XML for you).
The reporting requirement is aimed at personal-use passenger vehicle loans made to individuals. Loans for business or commercial use and leases are generally outside the deduction. Our guide on which vehicle loans require a 1098-VLI walks through the qualification rules lenders should apply.
Borrowers use the interest amount in box 1 to claim the car loan interest deduction on their individual return, if the loan and vehicle qualify. See I received a 1098-VLI: what do I do with it? for the borrower walkthrough.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.