Owning and operating a car is expensive in the best of times. Did you know the cost of operating your car, truck or other vehicle can be tax-deductible when driving for medical, relocation or charitable service?
Medical purpose involves driving for the purpose of obtaining medical care for yourself or your dependents. The drive must be "primarily for, and essential to, medical care." The deduction is taken as part of your medical expenses, one of your itemized deductions. The rate is 23.5 cents per mile.
The cost of driving your car to a new residence may be deductible as part of the moving expense deduction. To qualify, you need to relocate at least 50 miles farther from your old home than the distance between your old home and your old job. The rate is 23.5 cents per mile.
Driving to perform volunteer services for a church, charity or hospital can be deductible. This deduction is part of your charitable donations, one of your itemized deductions. The rate is 14 cents per mile. On top of the mileage amount, you can claim any parking fees and tolls. Remember it is important to document any deductions, so maintain your mileage log throughout the year.
The taxes you pay for your annual car tab renewal are also an itemized deduction. In Washington State this is the RTA tax. Remember to include this receipt when gathering your tax documents.
See the article below about record-keeping. It may surprise you to see how much these deductions can add up during the year.