Can I Claim Car Repairs on My Taxes?

Car repairs generally represent personal expenses and are not deductible from your taxes. However, specific situations allow for the deduction of vehicle-related costs, including certain repairs, when the vehicle is used for particular purposes. These exceptions primarily involve business activities, or, in more limited capacities, medical and charitable travel. Understanding these distinctions helps taxpayers claim eligible vehicle expenses.

Car Repairs for Business Activities

Claiming car repairs as a tax deduction is most commonly associated with vehicles used for business purposes. Self-employed individuals, such as independent contractors or small business owners, can deduct car repairs as ordinary and necessary business expenses. An expense is ordinary if common in your business, and necessary if helpful and appropriate.

Self-employed individuals using a vehicle for business have a choice between two deduction methods: the standard mileage rate or the actual expenses method. The actual expenses method allows deduction of all vehicle operating costs for business, including repairs, maintenance, gas, oil, insurance, and depreciation. Under this method, a distinction exists between a repair (deductible in the year incurred) and an improvement (depreciated over several years).

Choosing the standard mileage rate means multiplying business miles by a set IRS rate each year. For 2025, this rate is 70 cents per mile for business use. This rate accounts for fixed and variable costs of operating a vehicle, including depreciation, maintenance, and repairs, meaning you cannot deduct actual repair costs in addition to the standard mileage rate. Once you choose the standard mileage rate in the first year a car is used for business, you generally must continue using it for that car for the entire lease period if the car is leased.

Employee car repair deductions follow different rules. Under current tax law, unreimbursed employee business expenses, including car repairs, are generally not deductible. This law is in effect until at least January 1, 2026. While very narrow exceptions might apply to certain types of employees, such as Armed Forces reservists, qualified performing artists, or fee-basis government officials, these situations are highly specific and do not apply to the vast majority of employees.

If a vehicle is used for both business and personal purposes, only the business portion of repair costs is deductible. Expenses are prorated based on the percentage of business miles driven. For example, if 70% of mileage was business, 70% of actual repair costs are deductible under the actual expense method. Accurate records of business and personal mileage are essential to substantiate deductions.

Car Repairs for Medical and Charitable Travel

While car repairs are sometimes deductible for business activities, their deductibility for medical and charitable travel is significantly more restricted. Generally, the direct cost of car repairs for a vehicle used for medical transportation is not deductible as a medical expense. Instead, taxpayers can only include the actual costs of operating the vehicle for medical travel, such as gas, oil, parking fees, and tolls, or use the standard medical mileage rate.

For 2025, the standard medical mileage rate is 21 cents per mile. This rate is intended to cover the variable costs of operating a vehicle, including wear and tear, and therefore, specific repair costs cannot be added on top of it. Medical expense deductions are also subject to a significant Adjusted Gross Income (AGI) threshold, meaning you can only deduct the amount of qualified medical expenses that exceeds 7.5% of your AGI.

Similarly, for vehicles used for charitable purposes, the direct cost of car repairs is generally not deductible. Taxpayers can deduct the actual costs of gas and oil or use the standard charitable mileage rate for miles driven in service of charitable organizations. The charitable mileage rate, which is set by statute, is 14 cents per mile for 2025.

This standard mileage rate for charitable use includes an allowance for depreciation and wear and tear on the vehicle. The deduction for charitable mileage, or actual gas and oil costs, is typically taken as an itemized deduction on Schedule A.

Documenting and Reporting Eligible Expenses

Accurate recordkeeping is crucial for substantiating any claimed car-related deductions, including those for repairs or mileage. Taxpayers must maintain detailed records to prove the business, medical, or charitable purpose of their travel and the expenses incurred. Essential records include comprehensive mileage logs that document the date, destination, purpose of the trip, and odometer readings at the beginning and end of each journey.

In addition to mileage logs, it is crucial to keep all receipts for car-related expenses, such as repairs, gas, oil, insurance premiums, maintenance services, parking fees, and tolls. Proof of payment, like bank statements or credit card statements, should also be retained to corroborate these receipts. Accurate documentation ensures that you can justify your deductions if questioned by tax authorities.

For self-employed individuals, eligible vehicle expenses, including actual car repairs if that method is chosen, are typically reported on Schedule C. This form provides specific lines for vehicle expenses where these costs are entered. If the standard mileage rate is used, only the total business miles multiplied by the rate is reported, not individual repair costs.

Medical and charitable vehicle expenses, when eligible, are reported on Schedule A. These amounts are included with other itemized deductions, and for medical expenses, the Adjusted Gross Income threshold must be met before any deduction can be taken.