Is car insurance tax deductible?
I had a car for the first time this year. So naturally I also had car insurance for the first time ever. Is that deductible on my taxes?
Answer provided by
Answered on Feb 25, 2021
The answer to this question is, maybe! Car insurance is only tax deductible under certain circumstances. If your vehicle is used for personal purposes or to commute back and forth from work, then your insurance is probably not tax deductible. However, if your car is used for business purposes, it may be.
Keep in mind that there are other ways your car can help you save money on your taxes! If you have gotten rid of your old clunker by way of donation, it can be claimed as a charitable donation. You can also see if your state gives credit for alterations made to your car that reduce emissions, or for electric and hybrid cars.
It would be wisest to discuss this with your tax preparer or a tax professional. Also, many tax preparation programs have questions built in to determine if your vehicle expenses are tax deductible. Check out these articles for some more detailed information on this topic:
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
1 Car Insurance Company Claims To Have Saved Its Customers Over $4 Billion Last Year
Lisa Steuer McArdle
May 01, 2021
Tesla's Self-Driving Cars Continue To Be a Confounding Question for Auto Insurance Companies
Apr 30, 2021
Browse by topics
What others are asking
How much auto liability insurance should we have on our two vehicles?
We have two vehicles, a 2018 Chrysler 300 that is owned and a 2020 Hyundai Santa Fe that is leased. Most of the cars in our neighborhood are late-model expensive cars. How much liability coverage is enough without being too much?
Apr 26, 2021
"Can I refinance my auto loan with a different lender? "
"My credit score has improved tremendously over the last year. I would like to refinance, but the company that I am financed with does not offer refinancing. Is there a way to refinance for a lower payment and/or APR? "
Apr 26, 2021
What should I do if my car was hit by an uninsured driver?
My car was totaled in an accident with an uninsured driver. I only had liability coverage at the time and was partially at fault. I called after the accident to get higher coverage applied to my vehicle, but my insurance is denying the claim. I still owe $7,000 on my loan. What now?
Apr 30, 2021