Car insurance is tax-deductible for certain individuals, such as self-employed people, armed forces reservists, and qualified artists. If you use your vehicle for business-related reasons, you may be able to deduct part of your car insurance premium as a business expense. It's important to contact a certified public accountant or tax professional to review IRS guidelines for business expenses and make sure you're entitled to these and other tax deductions. If you're filing your taxes, you may be wondering if you can deduct premiums from your car insurance.
It's a good time to review your car insurance policy and make sure you have the coverage you need. Even if you only use your car to commute between work and home and nothing else, you're unlikely to be eligible for tax deductions. If you qualify to deduct car insurance expenses from your annual tax bill, then you need to keep a good record. For part-time rideshare drivers, such as Uber or Lyft drivers, you may have purchased an insurance endorsement.
However, if your vehicle is used for commercial use or you are self-employed, you may be able to deduct your car insurance and other vehicle-related expenses. If you work for yourself and use your car for your business or work, you'll likely be able to claim at least part of your auto insurance premiums as a tax deduction. If you use a car for business purposes (other than as an employee), many of the expenses associated with that vehicle may be tax-deductible as business expenses, including your car insurance premium.
Leave Message