Car insurance is vital if you own a car, but it often comes at a high price. For those who qualify, car insurance premiums are tax-deductible, allowing for the same quality of protection at a lower cost.
Can I Deduct Car Insurance On My Taxes?
Car insurance is tax-deductible if you are self-employed and drive your car to business-related locations outside of your daily commute. For example, if you work as an independent contractor for a company such as Doordash, you can deduct the time you use your vehicle for deliveries.
Other individuals eligible for this tax deduction include:
- Those in the armed forces traveling 100 miles or more away from their home
- Verified performing artists
- Local government officials
If you use your car to travel to and from work, it is not tax-deductible. You also cannot deduct your car expenses if your employer reimburses you in any way for the costs associated with the vehicle.
Can I Deduct Car Insurance For My Rental Property?
In the event that you rent a home or property and need to travel to the house for upkeep, any travel expenses are tax-deductible. If your rental property is close or does not require frequent visitation, this deduction may not be a significant amount. If you frequently make visits to your rental property, these savings will add up quickly.
Can I Deduct Car Insurance For Rideshare Services?
As a driver for a rideshare company such as Uber, your car insurance is tax-deductible during the hours you use your car to transport passengers. If your state requires you to purchase rideshare insurance, then the entire premium from that coverage is tax-deductible.
Can I Partially Deduct Car Insurance?
If you drive the same car for business and personal use, you can deduct the percentage of the time you use the vehicle for business-related activities.
If you don’t use a car for business purposes but occasionally travel for your employer, you can still take advantage of the tax deduction. For example, if you drive to a conference for work and don’t receive reimbursement from your company, you can deduct the time of the trip from your car insurance.
What Additional Costs Can I Deduct From My Taxes?
Along with deducting the cost of your car insurance, you can deduct other costs associated with your car from your taxes. These costs include:
- Repairs
- Fees for registration
- Parking costs
- Oil change fees
Get a Free Quote From Strock Insurance Today!
Strock Insurance is a leading provider of premium insurance solutions in Pennsylvania. If you’re looking for the best auto insurance for your vehicle, contact Strock Insurance today for a free quote.
