8 Car Expenses You Can Write Off on Your Taxes (Even Personal Use)

From eggs to gas prices, expenses have likely gone up in just about every aspect of your daily life. The financial strain is taking a toll on American families and individuals, especially car owners who still need to cover necessary maintenance, repair, and travel expenses.

Fortunately, some tax-based money moves for car owners may help lighten your financial load when you file a tax return. Keep reading to learn about eight car-related expenses you might be able to use as tax write-offs, even if you use your car for personal rather than business travel.

Certain qualifying medical and dental expenses that add up to more than 7.5% of your annual adjusted gross income this year and aren't compensated by insurance could be deducted. This includes fees for doctors, inpatient care, prescription medications, and the cost of driving to and from necessary medical appointments.

You can also choose to deduct the amount of money you pay out of pocket for oil and gas for necessary medical care, but if miles are easier for you to track, you can take the IRS's standard mileage deduction. For medical expenses, that's 21 cents per mile, plus the cost of tolls and parking.

If you, your spouse, or one of your dependents has a chronic illness and you plan to attend a medical conference related to necessary medical care and information for that illness, you can typically write off the cost of travel. As with other medical transportation costs, you can write off the gas and oil costs of travel, or you can take the standard 21-cent mileage deduction.

Bear in mind that while you can write off expenses related to your car, you can't deduct travel expenses like the cost of lodging and food while you're out of town for the conference.

Are you a volunteer for a qualifying, established charitable organization? You can deduct certain direct and indirect travel costs, such as out-of-pocket expenses for your car. But only if you spend the majority of your time assisting the organization, rather than vacationing for personal pleasure.

For example, if you travel across several states to help build homes for a 501(c)(3) but split your days between working on homes and relaxing on the beach, your travel expenses likely won't qualify for a charitable deduction.

On the other hand, if you spend eight to 10 hours a day working on homes for every day of your trip, you can likely deduct the travel expenses from your taxes, even if you spend a little bit of time relaxing at the end of the day.

Not sure if your expenses qualify? An accountant can review your specific situation and let you know if you can write off your expenses or not. They can likely also provide guidance on whether deducting direct travel expenses (such as gas) or using the standard charitable mileage rate of 14 cents per mile makes the most sense for you.

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If you're participating in work-related education that either your employer or the law considers necessary to keep your current job, you might be able to deduct the expenses of traveling to and from the educational site. You could also qualify for a deduction if your work-related education helps you keep or improve skills related to your current job.

However, only certain individuals can qualify for work-related education deductions, including self-employed individuals, certain performing artists, Armed Forces reservists, certain government officials, and individuals with disabilities. You cannot deduct travel costs related to work-related education if the education provides you with a new skill set that enables you to qualify for a new job.

Did you buy a new fuel cell vehicle or plug-in electric vehicle in 2023, 2024, or 2025? Certain vehicles can qualify you for a tax credit of up to $7,500. Used electric car buyers may qualify for up to $4,000.

However, you must have registered your vehicle with the IRS after purchasing it using information given to you by the seller at the point of sale. If you didn't get that qualifying information from the seller, you won't be able to claim the tax credit.

Also, note that even if you have the correct information from the seller, you can't claim the credit if your adjusted gross income exceeds a certain threshold. You can check the government's fuel economy website to find out if a vehicle you purchased qualifies for the credit.

If you donate your car to a qualifying charitable organization instead of selling it, you may be able to claim a deduction up to $3,000, depending on what the organization does with your car.

If the charity keeps the car for charitable use or sells the car to an individual in need, you can deduct the car's fair market value from your taxes. If the charity sells your car, you can deduct the cost of the sale (even if the car sells for below market price). However, if the charity sells the car for less than $500, you can claim the lesser of $500 or your car's fair market value on your taxes.

If you install modifications in your vehicle, such as hand controls so that you or another person in your household with a disability can drive, ramps, or other disability-related features, you may be able to write off the cost of the updates as they are considered a medical expense.

This also includes wheelchair lifts, wheelchair ramps, and other accessibility modifications for a wheelchair van. Note that it has to be used for medical necessity and be owned by the taxpayer. Additionally, you must provide proof of medical necessity and a doctor's note that indicates the medical condition of the wheelchair user and the need for the vehicle.

Taxpayers may be able to deduct personal casualty losses relating to their vehicle from their federal income tax return if the loss occurred in a federally declared disaster area. This is usually the result of damage, destruction, or loss due to any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake, or volcanic eruption.

Your vehicle qualifies if it is not covered by insurance. If insured, only the unreimbursed portion of the loss is eligible.

Strategically writing off certain expenses is one key way to get out of tax debt. Working with an accountant or other financial professional to itemize your taxes is another option.

A professional who knows the ins and outs of tax law can clue you into other often overlooked tax write-offs so you can maximize your tax return once tax day rolls around.