I heard there is a car repair credit available. Are car repairs tax deductible?
Typically, you can deduct standard vehicle expenses which is not a car repair credit. However, if you used your vehicle for a business purpose, you are generally allowed to deduct your unreimbursed vehicle expenses. To learn what car repairs are tax deductible you will have to use one of the following methods:
- Standard mileage rate — $0.545 per mile in 2018. If you use the standard mileage rate, you can’t deduct car repairs as a separate item. A portion of the standard rate already accounts for vehicle repair.
- Actual vehicle expenses
Divide your vehicle expenses between your personal use of the car and your business use of the car based on the miles you drove for each. Report these expenses on a Schedule C if you’re self-employed or on Form 2106 if you’re an employee.
What's the difference between allowances and dependent exemptions? Get tax answers from H&R Block.
How much is the tax credit for having a baby? And what about claiming a newborn on your taxes? Learn more about filing taxes with a baby at H&R Block.
Afraid of owing a penalty for not having health insurance? See if you qualify for the hardship exemption with the experts at H&R Block.
Learn more about the prior-year minimum tax credit and get tax answers at H&R Block.