Question

Is car insurance tax deductible? If so, can you deduct car insurance premiums paid on a monthly basis?

Answer

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 — $0.58 per mile in 2019. 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.

Related Topics

Related Resources

Where’s my refund – Utah?

Looking for more information about your Utah refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.

Student Dependent Requirements

Can you claim your child as a dependent if they are a full time student? Learn about dependent requirements and get tax answers from H&R Block.

Household Employment Taxes

Learn more about the rules for household employee taxes and get tax answers at H&R Block.

Why Was No Federal Income Tax Withheld from Paycheck?

Not sure why your employer did not withhold any federal or state taxes from your paycheck? Find out with the experts at H&R Block.