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.
Discover your tax filing status if married to a non-resident alien with help from the tax experts from H&R Block.
You can claim the standard deduction or itemized deductions to lower your taxable income. The standard deduction lowers your income by one fixed amount. On the other hand, itemized deductions are made up of a list of eligible expenses. You can claim whichever lowers your tax bill the most.
Are you eligible for self-employment tax deductions? Learn how to deduct health insurance and other expenses, and get tax answers at H&R Block.
Not sure if you need to file taxes if you’re being claimed as a dependent on someone else’s returns? Let H&R Block help you determine what you should do.