Is car insurance tax deductible? If so, can you deduct car insurance premiums paid on a monthly basis?
To determine if car insurance is tax deductible for your vehicle, you will have to establish the use of your car. Do you use your car for business? If so, you can deduct car insurance premiums paid. The vehicle expenses you deduct must relate to:
- Your main job
- A second job
- Both jobs
Generally, you can deduct unreimbursed vehicle expenses using one of these methods:
- Standard mileage rate — $0.535 per mile in 2017. If you use the standard mileage rate, you cannot deduct auto insurance premiums as a separate item.
- Actual vehicle expenses
Divide the expenses between personal and business use based on the miles you drive. Report these expenses on Form 2106.
As end-of-year approaches, taxes owed can become a major headache. Plan ahead by considering 529 Tax Deductions and other end-of-year savings options.
Due to the recent TCJA changes, we have re-released our trusted Tax Calculator. With a side-by-side comparison, you can now plan for this year's tax filing.
Do you have unreimbursed expenses to include on your tax return? Learn how to claim unreimbursed employee expenses with IRS Form 2106.
Trying to determine the cost of tax preparation or H&R Block’s prices? Find out why there is no one-size-fits-all answer when it comes to tax prep.