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Video instructions and help with filling out and completing Can 8850 Form Deduction

Instructions and Help about Can 8850 Form Deduction

1. We're here to answer the question: can I take my car insurance premiums as a deduction on my tax return? The answer is no, probably not unless you're in a business. 2. If you're running a business and you're using your car as part of the business, then that could be a legitimate expense. Typically, you will either take all of your expenses for the automobile, and whatever percentage of those are used for business, you would apply that factor to the expenses and take that deduction. 3. For instance, if you took 50 percent of your miles for personal use and 50 percent for work/business, you would take half of all your expenses and deduct those. 4. Now, you can take things like insurance, the cost of the car if you're leasing it, or if you're paying interest on the car. You can also take depreciation, oil, fuel, tires, repairs, and similar expenses. 5. The other option is to take the per-mile deduction. The IRS will give you a number that is the allowable deduction per mile. Again, you would take the number of miles used for business and multiply it by the amount given by the IRS per mile, and that would be your deduction. 6. However, if the question is whether you can take the deduction on your personal return, the answer is no, not unless you have a valid business.