How much insurance do I need to tax my car?

I have a small business as a performing artist, and I use my car for personal and business purposes. Since I use it for my job, is it possible to deduct my insurance from my taxes?

Answer
Because you use your car for business, you can deduct some of your car insurance from your taxes.
You need to look at when you use your car for business versus when you use it for personal reasons.
To do this, divvy up the mileage and come up with the percentage for each. If it’s about equal, say you use your car 50% of the time for your performing arts business and 50% for personal use, then you’ll apply 50% of your expenses.
If you are self-employed, you’ll want to file a Schedule C with this information. If not, then use a Form 2106.
Taxes can be confusing, but your car insurance shouldn’t be. If you want to see if you can get a better deal, make sure to check out the Jerry app. The average Jerry user saves $879 a year on car insurance, and our licensed agents are only a text or phone call away.
Lauren Smith
Answered on Oct 29, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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