The National Association of Tax Professionals (NATP) has proudly named Katherine (Katie) Gudgel as its 2025 Member of the Year. This award recognizes Gudgel’s outstanding contributions to the tax profession, dedication to community involvement, and unwavering support of NATP’s mission.

Gudgel, an enrolled agent since 2015, operates Gudgel Professional Services in Mesa, Arizona, specializing in tax preparation for seniors and trusts. Beginning her career as a Volunteer Income Tax Assistance (VITA) volunteer in 2011, she has continually demonstrated deep commitment to assisting clients with complex financial needs, expanding her practice to include daily money management services.

Jennifer Van Elzen, NATP’s director of Member Relations and Analytics, highlighted Gudgel’s impact: “Katie embodies professional excellence and genuine care for her clients and community. Her specialized knowledge in serving senior taxpayers and her dedication to volunteerism truly set her apart. We’re thrilled to recognize her as our 2025 Member of the Year.”

Gudgel was honored at NATP’s annual Taxposium event at Caesars Palace in Las Vegas, held July 21-23, 2025.

“I was genuinely stunned and deeply honored to receive this recognition,” Gudgel said. “It’s humbling to consider who might have nominated me and what qualities set me apart within such a dedicated group of chapter leaders. This acknowledgment inspires me to continue contributing to our association’s mission and supporting my colleagues in the field.”

Question: Sarah is a single taxpayer with a modified adjusted gross income (MAGI) of $95,000. In January 2025, she bought a brand-new SUV assembled in the U.S. for personal use. At the same time, she took out a loan secured by the vehicle as a first lien. She anticipated paying $9,500 in interest by the end of 2025. She heard the new law allows her to deduct the full amount. Sarah does not itemize. Can she still take the full deduction on her 2025 tax return?

Answer: Yes, she can. Even though she doesn’t itemize deductions, she can deduct the full $9,500 of interest as a below-the-line deduction (subtraction from adjusted gross income to arrive at taxable income) on her 2025 tax return. Under the new law, §63(b)(7) has been added to the Internal Revenue Code. This change allows for this special deduction for the qualified interest paid on personal car loans.

OBBBA provides individuals (including non-itemizers) with a temporary tax deduction for interest paid on loans used to purchase a new personal-use passenger vehicle.

For tax years 2025 through 2028, taxpayers may deduct up to $10,000 of the car loan interest per year, subject to a phase-out starting at $100,000 MAGI for single filers ($200,000 for joint filers), with the deduction fully phased out at $150,000 MAGI ($250,000 for joint filers).

To qualify, the following requirements under new §613(h), added by Section 70203 of the OBBBA, must be met:

• The loan must be incurred after Dec. 31, 2024
• The vehicle must be new, for personal use and secured by a first lien
• The vehicle’s original use must begin with the taxpayer (i.e., Sarah must be the first user)
• The vehicle must be a car, van, SUV, pickup truck, motorcycle or minivan with a gross vehicle weight rating under 14,000 pounds
• The vehicle must be finally assembled in the United States
• The taxpayer must report the vehicle identification number (VIN) on their tax return

The deduction is phased out starting at $100,000 MAGI for single filers ($200,000 for joint filers), but Sarah’s MAGI of $95,000 is below that threshold.

Sarah meets all requirements, and her MAGI of $95,000 is below the phase-out threshold. Therefore, she can deduct the full amount on her 2025 tax return.

NATP has proudly named its Alabama chapter the 2025 Chapter of the Year. This prestigious recognition is awarded annually based on exceptional membership growth, education offerings, member communication and volunteer engagement.

The Alabama chapter distinguished itself with remarkable membership growth, dedication to valuable educational programs, proactive communication with members and strong volunteer participation.

Amanda Schumacher, NATP chapter program manager, praised the chapter, saying, “We’re incredibly proud of the Alabama chapter and the amazing work they’ve accomplished. Their emphasis on education and active member engagement provides tremendous value to our members and sets a wonderful example for other chapters.”

The Texas chapter was recognized in second place for its excellent educational events and networking initiatives, while Michigan took third place for its consistent member communications and robust educational programs.

The winners were officially announced at NATP’s annual Taxposium, held July 21-23 at Caesars Palace in Las Vegas.

To learn more about NATP or its chapters, visit natptax.com.