I'm a home Child Care provider-Can I claim my Car pymt or Insurance when filing taxes?

Question

Any Tax Professionals out there?

I'm a home child care provider, doing my own taxes.

I use my vehicle for personal & business use.

I claim business miles on my taxes.

Can I claim a percentage of my Car Payment or Car Insurance when filing taxes?

If so- Where do I list it?

Also, Any Internet Sites with Specifics on this Topic would be appreciated.

Answer 1

Business use of your car is covered by the standard mileage amount or by claiming actual expenses.  

The standard amount includes amounts for depreciation (the cost of the car) and insurance.

Irs pub 463.

Answer 2

I know you're trying to save some money by doing your own taxes, but if you miss a deduction or deduct the wrong item, it will cost you a lot more than seeing an accountant.

Look at it this way: If you see an accountant this first time (and specifically one that specializes in daycare or home businesses), you will learn what you can and can not claim. Next year, you can use these returns as a template to do it yourself.

I went to an accountant for the first time 6 years ago. He saved me so much that one time that I've gone back ever since. To the tune of over $10,000 in savings in 5 years. It is worth the investment!

Answer 3

You are not allowed to claim business miles and car payment for the same car.  You are not allowed to claim business miles and car insurance for the same car.  Under certain circumstances, you may be allowed to claim business miles for one car and claim car depreciation (which is not calculated the same as car payment) and car insurance for another car.  The claim for business miles for any car is in lieu of all other deductions relating to business use of that car, except for parking and tolls.