Car insurance belongs on Line 9, car and truck expenses.
Why line 9
The IRS lists insurance among the actual car expenses, so a premium on a business vehicle belongs on line 9 with the rest of that vehicle's running costs rather than on the general insurance line. It is deductible at the business-use percentage, and only under the actual expense method. If you claim the standard mileage rate, insurance is already inside the rate.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so car insurance lands on Line 9 without you sorting it.
Start for freeWhat car insurance is confused with
- Line 15, insurance
- A policy covering a vehicle you report on line 9 goes on line 9; general liability, professional liability and business property policies go on line 15.
- not deductible, not deductible
- The personal-use share of the premium is not deductible, and under the standard mileage rate no part of the premium is deducted separately.
Examples that belong on line 9
- A $1,800 commercial auto premium on a plumbing van used entirely for work
- 60 percent of a $1,400 personal auto policy on a car used 60 percent for business
- An added commercial rider on a car used for catering deliveries
- $240 a year of extra coverage a delivery contract required
What does not belong here
- General liability or professional liability premiums, which are line 15
- Health insurance, which is the self-employed health insurance deduction on Schedule 1 line 17
- The full premium on a car that is also the family car
The limit that applies
Deductible at the business-use percentage, and only under the actual expense method.
What to keep
Keep the policy declaration page showing the vehicle and the premium, plus the mileage log that sets the business share.
Other expenses on line 9
| Expense | Line |
|---|---|
| a car used for business and personal trips | Schedule C, Line 9 |
| a registration bill that is part property tax | Schedule C, Line 9 |
| business mileage | Schedule C, Line 9 |
| car repairs and maintenance | Schedule C, Line 9 |
| gas and fuel | Schedule C, Line 9 |
| parking fees | Schedule C, Line 9 |
| rideshare and delivery driver mileage | Schedule C, Line 9 |
| tolls | Schedule C, Line 9 |
| vehicle registration and plate fees | Schedule C, Line 9 |
Related lookups
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so car insurance lands on Line 9 without you sorting it.
Start for free