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Tax 101: Know Your Car-related Tax Write-offs

Everyone dreads this time of year…tax season. But programs like Turbo Tax and H&R Block make doing your taxes a lot easier, and even look for deductions you might otherwise miss. For example, do you know all the write-offs available when it comes to owning a car? See below for a list of potential deductions, and be sure to check with your accountant or tax program to see if you are eligible for anything else.

tax write-offs

If you…

  • Use your car exclusively for business purposes, you can write-off expenses like lease, registration fees, gas, oil, repairs, insurance, tolls and parking.
  • Occasionally use your personal car for business, such as driving to a separate work destination or if you are temporarily reassigned to a location further away, you can write-off your mileage.
  • Babysit or do other odd jobs, you can deduct those miles.
  • Attend professional development workshops or are job searching, you can write-off your mileage to those destinations.
  • Volunteer, transportation expenses are considered charitable donations and may be deducted from your income taxes.

To our dismay, traffic tickets are never deductible. But, if you’re looking to save even more money on car expenses, check out our per-mile car insurance. Get a free quote here.