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BoldNerd78
Level 1

Filing from abroad (Germany) - can I deduct car insurance?

Hi,

 

I've been living in Germany for two years now and due to Covid-19 I no longer want to take public transportation to get to work. I'm going to buy a used car and will need car insurance. Germany has mandatory insurance, in other words you can't get away from it. I finally found a service called Joonko which seems to be the only English speaking car insurance comparison website in Germany. Their quote seems ok (not too expensive, but also not cheap due to the fact that I don't have a driving history in the country) but I am wondering if there is a way to deduct the expense from my US taxes to offset it somewhat? I also file German taxes but don't think I can deduct it there. Any ideas or suggestions?

 

Thanks, y'all. 

 

Nick

1 Best answer

Accepted Solutions
xmasbaby0
Level 15

Filing from abroad (Germany) - can I deduct car insurance?

No, you cannot deduct your car insurance.  The costs of commuting to and from work are not deductible.   If you were here in the U.S. you would also have to carry car insurance if you owned a car.    It would not be deductible on your tax return unless you are self-employed and the car expenses are part of your schedule C for your self-employment expenses.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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5 Replies
Critter-3
Level 15

Filing from abroad (Germany) - can I deduct car insurance?

No ... employee business expenses of any kind are not deductible on a US return any longer.  And even when they were commuting expenses have never been deductible. 

xmasbaby0
Level 15

Filing from abroad (Germany) - can I deduct car insurance?

No, you cannot deduct your car insurance.  The costs of commuting to and from work are not deductible.   If you were here in the U.S. you would also have to carry car insurance if you owned a car.    It would not be deductible on your tax return unless you are self-employed and the car expenses are part of your schedule C for your self-employment expenses.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

View solution in original post

BoldNerd78
Level 1

Filing from abroad (Germany) - can I deduct car insurance?

Thanks for the info - I figured as much, but at least now I know for sure 😫 Thanks again!

BoldNerd78
Level 1

Filing from abroad (Germany) - can I deduct car insurance?

Thanks for taking the time to respond. Even if it's bad news the info is much appreciated! N

xmasbaby0
Level 15

Filing from abroad (Germany) - can I deduct car insurance?

You are welcome.  Stay safe.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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