As the deadline to file yearly taxes inches closer, many people will be scrambling to find out more about auto insurance tax deductions. And rightfully so! After all, they are a yearly expense that we simply cannot do without. Even if you are someone with cheap car insurance or are paying higher rates as a result of speeding tickets, you may qualify for auto insurance tax deductions.
“Many people are simply not aware that they can deduct their auto insurance premiums when they file their taxes,” explains Larry Martinez, chief executive officer of Cheapcarinsurances.com. “It is usually listed as one of the most often overlooked tax deductions that there is. But it doesn’t have to be that way.”
Here are some important tips you should keep in mind when it comes to deducting your auto insurance premiums:
— Business rules. Deductions are only allowed if your vehicle is used for business purposes. If you use it for personal driving, you will not be able to take the deduction. However, if you use your personal vehicle for business or for your employer’s business purposes, you may still be entitled to deduct a portion of your premiums. — Record keeping. In order to get the deductions to which you are entitled, you will need to keep good records, including what your premiums were throughout the year. — Consider itemizing. A lot of people simply take the standard deduction because it is easier. But if you itemize your expenses, you may find that you come out ahead. — Think ahead. Even if you miss the chance at a deduction this year, now is the time to start preparing for next year’s tax season. Start by getting quotes for the cheapest car insurance and keeping your records straight.
“Some people may wonder if they are exempt because they have received speeding tickets,” adds Martinez. “But you are not. As long as you use your car for business, you can take the deduction.”
About CheapCarInsurances.com: Cheapcarinsurances.com has been helping people to find cheap car insurance since 2002. They provide a range of auto insurance information to help people understand how to get the lowest possible rates, in addition to providing free auto insurance quotes from multiple providers within minutes.
Contact Information Larry Martinez, CEO Cheapcarinsurances.com Email Contact