Vehicle Tax Deductions & Write-Offs for 2020

Vehicle Tax Deductions and Write Offs for 2020

Trying to get a bigger tax refund this year? The answer to your prayers may, in fact, come from your Honda.

In certain states, you may be able to itemize your deductions and write off a portion of your vehicle registration fee based on your car’s value. For residents in those 21 states, that’s great news. But because Florida does not assess vehicle registration fees by value, car owners in the Sunshine State cannot write off these costs when filing their 1040 tax return.

While that’s certainly a bummer for all our Miami neighbors, it doesn’t mean there aren’t any car write-offs or savings available for Florida drivers during tax season. Take a look at these options if you don’t own a business and want to maximize your tax refund this year.

Honda Clarity PHEV Tax Credit

Drivers in Miami who are looking to get the most bang for their buck should invest in an EV or PHEV like the Honda Clarity. The new Clarity keeps fuel costs down—all the way down to zero, for all intents and purposes—and comes with a $7,500 federal tax credit for its lucky owner to claim on his or her tax return. The benefits of owning the Honda Clarity don’t end on your 1040, however, as Honda’s plug-in hybrid is a bona fide performer.

For 2020, the Honda Clarity can travel up to 340 miles* on a single charge-up. With a 240-volt charger, the Clarity can hit 100% in just 2.5 hours, as well, so you can boost up and blast off after an extended lunch break. Clarity’s special Hybrid Drive Modes let you tailor your drive to match any scenario, while also using regenerative braking to restore up to 48% of the battery’s capacity. This all translates to fewer coins coming out of your pocket in the long term.

The federal all-electric car rebate is still available for 2020, as are these additional Florida incentives, savings and tax breaks:

Tax Deductions for Mileage

For the year 2020, the IRS allows everyone to write off tolls, parking fees and driving costs associated with operating a vehicle for business, charitable, and medical purposes—if you keep track of your records well.

Write-Offs for Medical Purposes

You’re able to claim 17 cents per mile driven for all medical purposes. This includes everything from going to your annual physical to picking up a prescription at the pharmacy.

Write-Offs for Charity

If you volunteer or donate your time or goods to a charitable organization, you may deduct up to 14 cents per mile driven to and from those locations.

Write-Offs for Business

Mileage driven for all business purposes, whether at the request of an employer or for self-employment endeavors, can be deducted at the standard 57.5 cents per mile. Beginning in 2018, these deductions are not available to employees who have been reimbursed by their employer.

Write-Offs for Education

If you attend school on a temporary basis and work full-time—for instance, if you take college classes at night and work during the day—you can deduct local round-trip transportation costs or take the standard mileage rate of 57.5 cents. Expenses for travel, meals and lodging associated with work-related education—for instance, attending a conference per your employer’s request—can be deducted, though certain qualifications exist. (Please consult with a tax professional.)


View the IRS Tax Benefits for Education publication for more details about mileage write-offs. If you’d like to build a Honda Clarity or check out the 2020 Honda Insight in Miami, contact one of our South Florida Honda Dealers. We can help you get ready for 2021’s tax season with a new EV, car or hybrid SUV like the upcoming CR-V Hybrid!


Disclaimer:
*Clarity: 47-mile maximum EV mode driving range rating. 340-mile combined gas-electric driving range rating. Based on 2020 EPA range ratings. Use for comparison purposes only. Your driving range will vary depending on driving conditions, how you drive and maintain your vehicle, battery-pack age/condition and other factors.


Sources:
fueleconomy.gov
afdc.energy.gov/laws
ttlc.intuit.com
irs.gov