Guide To Auto And Homeowners Insurance Tax Deductions And Write-Offs
Like most of us, you’d like to get as much money back as possible. After all, you worked hard all year and can’t wait to get your hands on a big, juicy check from the inner Revenue Service. To start out you off on the right foot, an instant online search will list hundreds of articles that reveal frequently overlooked taxes deductions-everything from ventures and moving expenses to charitable work and student education loans. In this particular guide, we’ll take things one step further. With the help of industry professionals, we’ll zoom in with pinpoint precision on auto and homeowners insurance tax deductions and write-offs.
Let’s start by quickly discussing some basics. Is There an improvement Between a Tax Deduction and a Tax Credit? Based on the Tax Policy Center at the Urban Institute & Brookings Institution, a tax credit is one which directly reduces an individual’s tax burden; it’s subtracted from the entire tax liability. Alternatively, a taxes deduction is one which reduces an individual’s taxable income. According to many industry experts, dollar-for-dollar, a tax credit is preferable to a deduction. With this said, keep in mind that we’ll only here discuss taxes deductions; not credits.
Is Auto Insurance Tax Deductible? The end result is that your auto-insurance premiums aren’t tax deductible if your vehicles are used exclusively for personal purposes. This includes commuting to and from a regular place of business, so long as you’re not on the clock while doing so. Alternatively, Jayson Mullin, owner and creator …