Nurse Car Loan Interest Deduction Calculator
For RNs financing the commute — with stacking notes.
The short answer: At the numbers below, the loan interest deduction is $2,800 — and if you work OT, the overtime deduction stacks on top (separate caps). Savings here: $616 at 22%.
New, US-assembled vehicle only
Modified Adjusted Gross Income
Car Loan Interest Deduction
$2,800
✅ You qualify for the full deduction
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
Nurses Can Stack Two OBBBA Deductions
W-2 nurses qualify for both the overtime premium deduction and the car loan interest deduction — separate line items, separate caps, one Schedule 1-A.
- • OT premium deduction: up to $12,500/$25,000
- • Loan interest deduction: up to $10,000
- • Phase-outs both key off the same MAGI
Worked Example
Single RN, $2,800 of loan interest.
- • Interest deduction $2,800; $616 at 22% — plus whatever your OT page shows
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Frequently Asked Questions
Can nurses deduct car loan interest under the OBBBA?
Yes — anyone with a qualified vehicle loan qualifies, and nurses often stack it with the overtime deduction.
Do the two deductions share a cap?
No — overtime, tips, car interest, and senior bonus each have their own caps on Schedule 1-A.