When it comes to taxes, you always want to pay only the fair amount, without leaving any credits or refunds on the table. That’s why many people wonder if car insurance is tax deductible. Come with us as we take a closer look at this common question.
Is Car Insurance Tax Deductible?
Car insurance is tax-deductible but only in certain cases and for certain individuals..
If you use your vehicle only for personal use, then chances are that you won’t be able to claim your car insurance premiums on your tax return.
On the other hand, if you use your car for business-related purposes then you might be able to deduct part of your car insurance premium.
You may be wondering what qualifies as “business-related purpose.” Good question! Here are some examples:
- Picking up and deliver supplies
- Driving to visit clients
- Driving to a business conference
Note that a car you use to drive to and from work doesn’t qualify as a business expense.
If you use your car for both personal and business purposes, then you must divide your expenses based on actual mileage before claiming any deductions.
Generally speaking, people who are self-employed are able to write off their car insurance premiums. Other individuals who can also take advantage of this deduction include:
- Armed forces reservists who are traveling up to 100 miles away from their home
- Some performing artists
- Free-basis state or local government officials
Keep in mind that you won’t be able to deduct your car insurance expenses if your business or employer already reimburse you for those costs.
Contact the Insurance Experts at Delgado’s Insurance
If you are looking for assistance with your car insurance, life insurance, or any other type of insurance policy, contact our experts at Delgado’s Insurance. Our mission is to help you make sense of your options so that you can get insurance tailored to your needs.
Our unique combination of insurance and tax expertise allows us to offer more informed and comprehensive advice than other insurance agencies.
We have locations in Riverside, California, and Bloomington, California. Contact us today by telephone (951-361-0084, 909-421-9003), email (email@example.com), or through our social media accounts (Facebook, Twitter) to get a free quote and learn more about our wide array of services.