At a Glance
The Three-Part Test
Working through a servicing portfolio, each loan needs to pass three gates before it lands in your 1098-VLI file:
1. The interest threshold
You received $600 or more of interest on the loan from the borrower during the calendar year. Interest received, not billed or accrued; a delinquent loan that paid little interest may fall under the threshold even if the note called for more.
2. The loan qualifies
- Originated after December 31, 2024 (the IRS enforces this date on the e-filed form)
- Made to an individual, not an entity
- Secured by the vehicle it financed
3. The vehicle qualifies
- A passenger vehicle for personal use: cars, minivans, vans, SUVs, pickup trucks, and motorcycles are the usual population
- Purchased for use on public roads, not off-road or commercial equipment
What Falls Outside the Requirement
| Loan Type | 1098-VLI? | Why |
|---|---|---|
| New personal-use auto loan, originated 2025 or later, $600+ interest | Yes | Meets all three gates |
| Loan originated before January 1, 2025 | No | Outside the loan-date window |
| Vehicle lease | No | A lease is not a loan; there is no loan interest to report |
| Business or fleet vehicle loan | No | The requirement targets personal-use vehicle loans to individuals |
| Qualifying loan with under $600 interest received | No | Below the reporting threshold for the year |
| Refinance of a qualifying loan | Review | Refinancing rules have specific conditions; check the IRS instructions for the treatment of refinanced amounts |
Qualification vs. the Borrower's Deduction
Note what is not in the filing test: whether the vehicle was new, and where it was assembled. Those two facts decide the borrower's deduction, and the form reports them in boxes 6 and 7, but a lender's obligation to file does not hinge on them. Report the facts; the borrower's return draws the conclusion. Details on every field are in the box-by-box instructions.
Portfolio Prep for the First Season
- Flag post-2024 originations to individuals in your servicing system now
- Track interest received per calendar year per loan, so the $600 test is a query, not a project
- Capture vehicle data at origination: year, make, model, VIN, new-vehicle status, and final assembly location are all fields on the form
- Verify borrower TINs before the January statement run
When the file is ready, the form is IRIS-only. BoomTax turns your loan data into validated IRIS XML and files it: see e-file Form 1098-VLI online and the deadlines. New to the form entirely? Start with what is Form 1098-VLI.
Frequently Asked Questions About 1098-VLI Filing Requirements
No. A lease is not a loan, so there is no loan interest to report on a Form 1098-VLI.
No. The loan must have originated after December 31, 2024, and the IRS enforces this date on the e-filed form. Pre-2025 originations are outside the requirement.
No. New-vehicle status and US final assembly decide the borrower's deduction, and the form reports them in boxes 6 and 7, but a lender's obligation to file does not hinge on them. Report the facts; the borrower's return draws the conclusion.
Tax year 2026 is the first reportable year. See our Form 1098-VLI due date page for the deadlines.
Related reading: the 1098-VLI is one of the new IRS information returns arriving for tax year 2026.
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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.